• LeoVegas Acquires Royal Panda Casino

    26 October 2017

    Leovegas acquires royal panda casino

    LeoVegas AB released their third quarter interim report yesterday and also announced that subsidiary, LeoVegas International Ltd,  has signed an agreement to purchase Royal Panda Casino along with other assets of Malta-based Web Investments Limited for the sum of 60 million euro (about US$70m).

    The sale is expected to be completed on December 1, 2017. The purchase agreement also calls for another €60m to be paid out in one year if the casino meets certain performance targets, mostly based on UK revenues. The deal would then be worth some €120 million.

    UK Market Strength

    LeoVegas Casino is a multi-platform online casino with great strengths in the Nordic region as well as the rest of regulated markets in Europe. The casino is also available in certain "gray" markets such as Canada. Royal Panda is performing extremely well in the UK and adds regional strength to the Stockholm traded LeoVegas AB. Overall, Royal Panda saw year on year Q3 revenues up more than 60% with over half of that attributable to UK customers. Earnings before interest, tax, depreciation, and amortization (EBITDA) for the period are expected to be just over €3m. 

    New Financing Facility 

    LeoVegas AB historically operates from a strong cash position which they used for this purchase. In order to fill their "war chest" back up and to complete future acquisitions, the company also announced that they have secured €100 million in new financing, €40m of which is in the form of a revolving credit facility.

    Targets for €60m Earn-Out

    In order for Web Investments Limited to receive the earn-out of an additional €60m, Royal Panda needs to generate a minimum of €50m in Net Gaming Revenue over the coming year with EBITDA of at least €15m. The UK market needs to account for €34m with at least €5m in EBITDA.

    "Two great brands with global appeal"

    LeoVegas CEO, Gustaf Hagman commented on the deal, saying: "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," according to company press releases Wednesday. 

    Live Dealer, Mobile, Multiple Licenses

    Both casinos have great strengths in the mobile sector, including live dealer games, and both are dual-licensed in the United Kingdom and Malta, with LeoVegas also approved for business by the Danish Gambling authority.

    Source

    LeoVegas AB, Press Release, LeoVegas enters into agreement to acquire gaming operator Royal Panda, obtains debt financing of EUR 100 million and adjusts financial targets


    Related News

    • Pragmatic play goes live with pronetgaming

      Gambling News

      Pragmatic Play Slot Portfolio Live with Pronet GamingGamesAndCasino18 December 2020

      Pronet Gaming has revealed a deal with online casino content provider, Pragmatic Play, as the platform operator strives to further increase its game portfolio. According to the deal, Pronet clients will have access to a range of titles from the developer’s lobby of games, which consists of the latest games such as The Dog House Megaways, as well as most popular titles such as the John Hunter series and Wolf Gold. Pronet’s online casino content has over 6.

      Read full article
    • Yggdrasil strengths its position in switzerland with grand casino luzern

      Gambling News

      Yggdrasil Strengths Position in Switzerland With Grand Casino LuzernGamesAndCasino11 December 2020

      Yggdrasil, the world's leading provider of online games, has entered into a distribution agreement to make its gaming portfolio available in Switzerland under the mycasino.ch, Grand Casino Luzern brand. Operator clients will have access to innovative and exciting content from Yggdrasil slots, including Syncronite Splitz, Hyperburst, Hades Giglablox and Valley of the Gods 2, as well as games from YG Masters program.

      Read full article
    • Relax gaming starts new partnership with casino 1win

      Gambling News

      Relax Gaming Begins New Partnership with 1winGamesAndCasino20 November 2020

      Relax Gaming, a casino game aggregator and content provider has inked a content distribution agreement with the promising online casino, 1win. This deal allows the provider to bring a range of high-quality games from the provider’s growing portfolio, with hits such as Snake Arena, Money Train 2 and Temple Tumble. According to the Deal

      Read full article