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LeoVegas gambles on UK casino operator
Posted on Friday, 12 January 2018 14:23
Swedish online mobile gambling application developer LeoVegas, through a subsidiary, will buy certain assets from British companies Intellectual Property and Software (IPS), European Domain Management (EDM) and Rocket9 for GBP 65.00 million in cash.
Financed through existing debt facilities, the deal is expected to complete late in the first quarter of 2018, subject to customary closing conditions.
Brands 21.co.uk, Slotboss, Bet UK and UK Casino will all be added to the acquiror’s portfolio following the transaction.
Together with Rocket9 and EDM, which claims to be the marketing firm behind many of Europe's top online bingo brands, IPS had an adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of GBP 3.80 million for Q4 2017.
The online gaming platform operator holding company also posted revenue of GBP 11.70 million for the period, 96.0 per cent of which is generated in the UK and 73.0 per cent comes from mobile devices.
Stockholm-based LeoVegas was founded in 2012 and claims to be the fastest growing mobile gaming group and the market leader in mobile casino.
Today’s announcement comes a month after the firm announced the purchase of CasinoGrounds for SEK 45.00 million (EUR 4.58 million) and Web Investments, which holds the Royal Panda trademark, for EUR 60.00 million.
For the three months ending 30th September 2017, it reported EBITDA of EUR 7.64 million on revenue of EUR 55.62 million for a margin of 13.7 per cent.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 590 deals targeting British data processing, hosting and related services providers since January 2017.
Stock exchange operator TMX’s USD 724.00 million acquisition of Trayport from Intercontinental Exchange in December was the largest such transaction.
© Zephus Ltd