Stockholm-listed European online gambling group LeoVegas AB continues its strategic UK expansion confirming the acquisition of all related assets of Intellectual Property & Software Limited (IPS).
Updating the market, LeoVegas governance confirms that it will acquire IPS assets outright for a total consideration of £65 million, securing the following UK-centric online casino properties; 21.co.uk, Slotboss, Bet UK and UK Casino.
The acquisition of IPS assets is undertaken through LeoVegas’ recently secured debt financing structure of €100 million.
Supporting its acquisition, LeoVegas will further incorporate IPS’ operational assets of European Domain Management and Rocket9 Marketing.
In its market note, LeoVegas details that during the fourth quarter of 2017 IPS had revenues of £11.7 million and, together with EDM and Rocket 9, adjusted EBITDA* of £3.8 million, representing an EBITDA* margin of 32.6%.
Gustaf Hagman, LeoVegas’ Group CEO, commented on the deal: “To be able at our 6-year anniversary of the launch of LeoVegas to conduct this remarkable acquisition feels just great! Since its start, LeoVegas has pursued a highly successful global brand strategy.”
During Q4 2017, LeoVegas AB executed its largest acquisition to date, acquiring UK online casino RoyalPanda.com for a deal consideration of €120 million. LeoVegas governance confirmed that it would expand its European footprint implementing a multi-brand multi-product strategy for its new assets.
“Following the acquisition of Royal Panda, LeoVegas now works with two scalable brands. We believe that in larger markets our global brands, LeoVegas and Royal Panda, can be complemented with a local, multi-brand strategy.
“The UK market is a very large and mature market and that is the reason to work with several brands that attract various types of customers. In IPS we see several attractive attributes, and they have tremendous momentum in their growth and profitability. Combined with one of the market’s most effective customer acquisition models, we are now gaining a firm stronghold in the UK with the acquisition of 85 employees with local expertise. With this acquisition, we are adding a company culture with a strong technology and product focus which is a perfect fit with LeoVegas’ to further strengthen the Group’s position as the leading GameTech company.”