LeoVegas invests in the leading streaming network CasinoGrounds
06 Décembre 2017 - 2:00PM
The LeoVegas mobile gaming group has, through its
wholly owned subsidiary LeoVentures Ltd, signed an agreement to
acquire 51% of the shares in GameGrounds United AB (CasinoGrounds),
which owns the streaming network casinogrounds.com. The purchase
price is SEK 30 million, with a potential, maximum earn-out payment
of SEK 15 million. Based on LeoVegas' assessment, the full earn-out
payment will be made. CasinoGrounds is the leading live streaming
site for casino games via YouTube and Twitch. The acquisition is
expected to close on 1 January 2018.
GameGrounds United AB operates the site
www.casinogrounds.com, which in a short time has become a casino
streaming platform with an active and social casino forum. The
company cooperates both with operators and game makers in the
industry. CasinoGrounds had revenue of SEK 4.1 million during the
third quarter of 2017, with good profitability. The acquisition
initially will not have any significant effect on LeoVegas' net
profit.
Gustaf Hagman, LeoVegas' Group CEO, comments:
"In CasinoGrounds we see a new behaviour in which
persons interested in casino are watching others play casino via
YouTube and Twitch. CasinoGrounds has created a new niche through
its live streaming and social platform, which are highly
appreciated by 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. LeoVegas has had successful
cooperation with CasinoGrounds since 2016, and we know their team
well. Our ambition is now to scale up existing operations to more
markets."
The acquisition of 51% of the shares in
CasinoGrounds is being made through LeoVegas' wholly owned
subsidiary LeoVentures Ltd. The purchase price is SEK 30 million,
with a potential, maximum earn-out payment of SEK 15 million, which
is based on revenue performance during the period January-June
2018. Based on LeoVegas' assessment, the full earn-out payment will
be made. In addition, the agreement includes an option to purchase
an additional 29% of the shares in 2021 or 2022 at 5 times
operating profit (EBIT multiple).
The information in this release
is such that LeoVegas AB (publ) is required to make public in
accordance with the EU Market Abuse Regulation (596/2014). The
information was submitted, by the agency of the contact persons
below, for publication at 14:00 CET on 6 December 2017.
For further information, please
contact:
Gustaf Hagman, Group CEO and co-founder: +46
70-880 55 22, gustaf.hagman@leovegas.com
Philip Doftvik, Head of Investor Relations: +46 73
512 07 20, philip.doftvik@leovegas.com
Visitors address: Sveavägen 59, Stockholm
Corporate identity number: 556830-4033
About the LeoVegas mobile gaming
group
LeoVegas' passion is "Leading the way into the
mobile future". The business is distinguished by award-winning
innovation and strong growth. LeoVegas' technical development is
conducted in Sweden, while operations are based in Malta. The
Swedish parent company LeoVegas AB (publ) invests in companies that
offer gaming via mobile devices and desktop computers along with
companies that develop related technologies. LeoVegas has attracted
major international acclaim and has won numerous awards, including
"Nordic Operator of the year", "Mobile Marketing Campaign of the
Year" and "Innovation in Mobile and Tablet of the Year" at the
international EGR Awards. LeoVegas bases its development on "Mobile
First" and is at the forefront of using state-of-the-art technology
in the mobile gaming market. With a foundation in a great gaming
experience, long-term customer relationships and establishment of a
strong brand, the company has attracted a steadily growing customer
base through innovative, effective and data-driven marketing. Since
its start, the mobile gaming company LeoVegas has shown strong
quarter-on-quarter growth. LeoVegas' shares are listed on Nasdaq
First North Premier. Avanza Bank AB is the company's Certified
Adviser. For more about LeoVegas, visit www.leovegasgroup.com
or www.leovegas.com.
LeoVegas invests in the leading
streaming network CasinoGrounds
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: LeoVegas AB via Globenewswire
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