Swedish mobile gaming specialist LeoVegas has acquired the online casino operations of Intellectual Property & Software Limited (IPS) for €73.8 million.
LeoVegas has acquired the assets of IPS including other related assets from 22 individually branded sites currently operating under the IPS, eighteen of which target British players and other four that are live in Sweden. Some of the sites from European Domain Management (EDM) are 21.co.uk, Slotboss, BetUK, and UK Casino.
In addition to this huge deal, LeoVegas has agreed to acquire the assets of marketing services business Rocket 9 Ltd. The transaction is expected to be finalized at the end of March and is expected to strengthen LeoVegas’ presence in the UK and its position as a leading mobile operator.
LeoVegas Group CEO, Gustaf Hagman is happy to announce this acquisition at LeoVegas’ six-year anniversary and believes this local multi-brand strategy will complement the company’s growth. Strong technology and product focus in combination with local company culture is a perfect fit for LeoVegas’ further plans for strengthening their position as the leading GameTech company.
“Combined with one of the market’s most effective customer acquisition models, we are now gaining a firm strong- hold in the UK with the acquisition of 85 employees with local expertise”.
IPS generated revenue of €13.3 million in the final quarter of 2017 which is almost 50% higher in comparison to the sum reported in the final quarter of 2016. The combined operations of IPS, EDM and Rocket 9 reported adjusted earnings of €4.3 million, representing an earnings margin of 32.6%. IPS’s total revenue comes from the UK and 73% are coming via mobile devices.
Recently, LeoVegas has bought a UK-facing rival, Royal Panda Panda for €100 million and a controlling stake in the casino streaming site, CasinoGrounds for €3.07 million. Since the UK market is very large and mature market, they need to work with various brands that attract various types of customers.
In November 2017, LeoVegas was classified as a “unicorn” in its ongoing IPO, a startup valued at more than €1 billion so this is just the beginning of their expansion.
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