● LeoVegas adds Intellectual Property and Software Limited to it’s recent acquisitions in deal worth £65m.
● The purchase comes shortly after LeoVegas acquired assets from Rocket9 Limited.
● The deal gives LeoVegas control over BetUK, Slotboss, 21.co.uk and UK Casino.
LeoVegas has agreed a deal to buy the assets of Guernsey-based Intellectual Property & Software Limited (IPS) and has recently acquired assets from Rocket9 Limited and an unnamed company. Worth £65 million, the deal gives LeoVegas control of a number of well-known brands, including Bet UK, Slotboss, 21.co.uk and UK Casino.
What is LeoVegas?
LeoVegas is a Swedish online casino and gaming company, founded in 2011 by Gustaf Hagman (the current CEO). Over the last few years, the company has gone from strength to strength and now boasts annual revenue of €83 million (£74 million). It generated £11.7 million in the fourth quarter of 2017 alone which constitutes a rise of almost 50% compared with the same period in 2016.
LeoVegas’ business model focuses on acquiring customers through digital data-driven means using smartphones, tablets and (to a lesser extent) smartwatches.
The company also launched LeoVentures in late 2017. This division works as LeoVegas’ innovation and investment arm and seeks to develop new technology for use in the gaming industry. LeoVegas’ co-founder, Robin Ramm-Ericson, took on the role of Managing Director for LeoVentures.
How is the company financing the acquisition?
In a statement, LeoVegas confirmed its plans to finance the IPS acquisition partly with cash. It will also use funds from the debt financing it secured as part of the £60 million purchase of Malta-based Royal Panda last year. Of this £60 million, more than £35 million is subject to a rolling-credit facility.
What does the acquisition mean for LeoVegas’ future?
As a part of the acquisition, LeoVegas strengthens its relationship with Bede Gaming, whose advanced technical platform it already uses to great effect.
The purchase of IPS is LeoVegas’ third in the space of a single quarter, following the acquisition of Royal Panda and Casino Grounds (a casino-streaming service). LeoVegas’ first acquisition of 2018 continues the company’s highly-successful brand strategy, which shows no signs of faltering.
IPS is a fast-growing company with high profit margins and its purchase brings with it 85 UK-based employees with a wealth of local expertise. It is a cause for celebration for LeoVegas and a great way for the brand to cement its stronghold in Britain. In fact, the purchase allows LeoVegas to celebrate its seventh year in business by taking one more step towards becoming the UK gaming industry’s leading mobile operator.