Presenting its Q3 2017 trading update (period ending 30 September), Stockholm-listed Leo Vegas Group AB has confirmed that it has entered a ‘definitive agreement’ to acquire Malta-based Web Investments limited the operating company of online casino Royal Panda (RoyalPanda.com).
Leo Vegas has agreed to acquire online casino Royal Panda outright for a purchase price of €60 million, with the company adding a further €60 million in earn-out incentives.
Updating stakeholders, Gustaf Hagman Group CEO of Leo Vegas AB detailed that Royal Panda would act as a further multi-market brand for the company. Furthermore, the group expands its presence within the saturated UK online gambling market through the acquisition of ‘the established’ Royal Panda casino.
“Royal Panda has in a short time built up an efficient business with an exciting and strong brand. This is a major acquisition that we are carrying out following a carefully executed process. With the help of the strong symbolic value in the panda, the company has built a premium brand among gamers, and we will complement LeoVegas with Royal Panda. This gives us two great brands with global appeal, which makes the scalability in the continued growth strong while strengthening our position in the UK,” Hagman commented on the acquisition.
In order to fund its M&A strategy, Leo Vegas governance has obtained a debt financing transaction of €100 million, in which €40 million is available through a revolving credit facility.
LeoVegas governance expects the Royal Panda transaction to be completed by December 2017.
Completing a busy Q3 period, Leo Vegas detailed a continued strong momentum in which group revenues hit the €55 million mark. The company detailed period KPI gains across its portfolio, despite recording a lower corporate EBITDA of €7.6 million (Q3 2016: €9.8 million) which had to adjust to M&A and Nasdaq listing costs.
“During the fourth quarter we expect marketing in relation to revenue to be higher than in the third quarter. We will most likely reach the highest level during the year as we plan to invest ahead of the Christmas holiday season. With a great acquisition, a good start to the fourth quarter and a continued strong cash position, we continue to have tremendous opportunities going forward, and we are all looking forward to an exciting fourth quarter.”
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