LeoVegas Enters Agreement to Acquire Royal Panda

LeoVegas(publ on Nasdaq First North Premier exchange), a Swedish online casino, sports betting and poker operator has just entered an agreement to acquire Royal Panda, an online casino and betting operator which is licensed in the United Kingdom.

LeoVegas Enters Agreement to Acquire Royal PandaThe acquisition is being done through LeoVegas International Ltd, where they will acquire all of the shares in the Maltese company Web Investments Limited who own the Royal Panda trademark at a price of 60 Million Euros with a possible earn-out payment of another 60 million euros.

In order to achieve this acquisition, the LeoVegas Group had to receive debt financing for the sum of 100 million Euros.

The acquisition is expected to be done by December 1, 2017 and was made to strengthen the expansion of LeoVegas in regulated gaming markets which include the UK.  This acquisition has led the LeoVegas Board of Directors to adjust the company’s financial targets as an acquisition was never in the original targets.  However, their long term targets will remain the same which are:

  • Long-term organic growth above online gaming market
  • Long-term at least 15% EBITDA margin assuming 100% regulated markets
  • LeoVegas dividend policy is to distribute a minimum of 50% of net profit over time

LeoVegas which is a financially strong company in terms of available cash was able obtain the loan where 40 million Euros of it consists of a Revolving Credit Facility.  The loan will be financed at 2% interest rate over a three year period and amortization will begin during the second quarter of 2019 at the rate of 10 million Euros quarterly.

LeoVegas is known for its mobile gambling platforms and has had several award-winning innovations such as the “Nordic Operator of the Year” award, the “Mobile Marketing Campaign of the Year” and the “Innovation in Mobile Tablet of the Year”.

Royal Panda which is known for having a very successful proprietary technical online casino platform with a total of 60 employees in its Malta office is very happy about the acquisition.  For its third quarter, it saw its revenue grow 61% and 50% of it came from the UK market.

According to the latest email received by the Royal Panda affiliates, it is business as usual and their affiliate team will remain in contact as they work alongside LeoVegas with any new development but they intend to honor all existing affiliate deals.

Online casinos and sports betting software Competitors are keeping a close eye on this acquisition to see how it will affect the gambling market.

For more information about the acquisition, here is the contact information:

  • Gustaf Hagman, Group CEO and co-founder: +46 70-880 55 22, gustaf.hagman@leovegas.com
  • Viktor Fritzén, Group CFO: +46 73-612 26 67, viktor.fritzen@leovegas.com
  • Philip Doftvik, Head of Investor Relations: +46 73 512 07 20, philip.doftvik@leovegas.com
  • Visitors address: Sveavägen 59, Stockholm
  • Corporate identity number: 556830-4033

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