LeoVegas Ends Q3 With €60m Royal Panda Acquisition
LeoVegas has announced the results for the three-month period ending on September 30. In addition to this, the Stockholm-headquartered company confirmed the acquisition of the Web Investments Limited which operates Royal Panda online casino.
LeoVegas will pay €60 million for the Maltese-based company, with additional €60 million in earn-out incentives.
Expanding Its Presence in the UK
Gustaf Hagman, LeoVegas’ Chief Executive Officer stated that Royal Panda would be positioned as a multi-market brand, enabling the company to expand its presence in the regulated online market of the United Kingdom.
Hagman said that Royal Panda had built up an efficient business with an exciting and strong brand. He described this acquisition as a major one and added it was carried out following a carefully executed process. Hagman also noted that LeoVegas would have two great brands with global appeal, which would further strengthen the company’s position in the United Kingdom.
To support the ongoing strategic policy, LeoVegas has obtained a debt financing transaction of €100 million, of which €40 million will be obtained through a revolving credit.
If all goes as expected, the Royal Panda acquisition will be completed by December 2017.
Q4 Looks Even More Promising
LeoVegas can be satisfied with the third quarter, with revenues reaching €55 million, although earnings before interest, taxes, depreciation, and amortization were 25% (€7.6 million) lower than in the corresponding period of last year.
Hagman added that with Royal Panda acquisition, the company expected a good start to the fourth quarter and a continued strong cash policy. He noted LeoVegas would most likely reach the highest level during the year during the next quarter, mainly due to the Christmas holiday season.
He said everyone at the company was looking forward to an exciting fourth quarter.