LeoVegas Announces IPS Acquisition
LeoVegas AB, the parent company of the mobile gaming company and provider of online casino and sports betting services LeoVegas, has increased its presence in the UK market after completing the purchase of all the assets belonging to Intellectual Property & Software Limited (IPS).
For a total sum of €73 million, LeoVegas AB acquired several IPS-owned online casino brands focused on the UK market – 1.co.uk, Slotboss, Bet UK and UK Casino, while the transaction itself was made possible through the recently secured debt financing structure of €100 million.
A Fantastic Move
In addition to this, LeoVegas will also take over IPS operational assets of European Domain Management and Rocket9 Marketing.
IPS, which is an Alderney based gambling company, recorded revenue of €13.1 in the fourth quarter of 2017, along with adjusted EBITDA of €4.3 million and a corresponding margin of 32.6%.
Commenting on the deal, Gustaf Hagman, LeoVegas Group Chief Executive Officer said it felt great to be able to conduct this remarkable acquisition and emphasized the company had pursued a highly successful global brand strategy since its founding.
During the fourth quarter of 2017, LeoVegas made the biggest purchase in its history, paying €120 million for the UK-based RoyalPanda.com online casino. Following that move, the company’s executives confirmed they would expand LeoVegas’ presence in European markets.
Part of an Ambitious Strategy
According to Hagman, following the purchase of Royal Panda, LeoVegas focused on working with two global brands, which could be complemented with a local multi-brand strategy.
Hagman said the UK market was a very large and a mature one, which was the reason to work with several brands that attracted various types of customers. He also added LeoVegas saw several attractive attributes as well as tremendous momentum in its growth and profitability.
With the purchase of IPS, LeoVegas gained a firm stronghold in the United Kingdom, especially since the company now has 85 new employees with expertise in the local market.
Hagman stated this move added a company culture with a strong technology and product focus, which was a perfect fit with LeoVegas’ plans to further strengthen the Group’s position.