LeoVegas Becomes Majority Shareholder of CasinoGrounds
It’s only been a month since LeoVegas first announced that it had agreed on a deal to become a majority stakeholder of the CasinoGrounds streaming network.
GameGrounds United – the owner of the CasinoGrounds – decided to sell a 51% majority stake in its flagship brand under an agreement that stipulated that LeoVegas was due to pay initial SEK30 million.
The deal also included a potential maximum earn-out payment of SEK15 million. This additional amount is based on the company’s revenue performance for the period between January and June 2018. LeoVegas expect that full amount will be paid upon conclusion of the given timeline.
LeoVegas made the acquisition through its LeoVentures subsidiary with the entire deal becoming official at the beginning of 2018.
CasinoGrounds made a name for itself in the gaming industry by live streaming casino games through YouTube and streaming service called Twitch, which is a social casino forum. This unique platform created a fascinating niche through its streaming and social services which have become extremely well accepted and appreciated by the players.
“The combination of proprietary content and the moving picture format create exciting opportunities going forward and is in line with LeoVegas’ strategy to be an innovative and entrepreneur- driven company.”, Group chief executive of LeoVegas, Gustaf Hagman, commented.
In addition to currently acquired 51% of the shares, LeoVegas has agreed on an option to purchase an additional 29% of CasinoGrounds shares later in 2021 or 2022 for the sum equal to five times the operating profit.
LeoVegas’ deal with CasinoGrounds comes as another testament to the company’s expansion plans after last month’s successful acquisition of Web Investments Limited, which is the company standing behind the Royal Panda gaming brand.
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