LeoVegas AB acquires the Royal Panda brand

The Swedish online gambling company LeoVegas AB has informed about the signed deal to acquire the Maltese company Web Investments Limited together with its domain at Royal Panda.com. The company from Stockholm LeoVegas AB told that they expect to close the deal in December.

LeoVegas AB is the owner of a mobile online casino LeoVegas.com and says that the purchase is made by LeoVegas International Limited subsidiary. To finish this and others “future opportunities of acquisition”, it has said that it has allocated in addition $117,8 mln. of additional debt financing, from which $47,1 mln. is the share of a new revolving line of credit.

In accordance with the terms of the agreement, € 60 million will be paid at the initial stage. Another € 60 million can be paid if the company receives revenues of € 50 million, while EBITDA will be at least € 15 million within 12 months.

Additional conditions included in the deal are that at least € 34 million of net gaming revenue and € 5 million of EBITDA should be received from the UK.

As a result of this acquisition, LeoVegas adjusted its financial performance for the next few years.

CEO of LeoVegas Group Gustaf Hagman explained, “Royal Panda has in a short time created an effective business with an interesting and strong brand. The addition of LeoVegas with the acquisition of Royal Panda will create two powerful brands of global importance, which will increase the level of the company, strengthening our position in the UK. “

First of all, the brand is focused on the British market, which in the third quarter of 2017 brought the brand 50% of total revenue. During this period, total revenue increased by 61% to € 9.8 million. The main activity of the company is online casino, but recently it launched a platform for sports betting.