(Reuters) - MGM Resorts (NYSE:MGM) International on Monday offered to acquire Swedish online gaming company LeoVegas AB for about $607 million, paving the way for the U.S. casino operator to expand its presence in Europe.
MGM floated a recommended public tender offer for 61 crowns ($6.20) in cash per share, which represents a 44.2% premium to LeoVegas' last closing price of 42.32 crowns.
MGM has been looking to capitalise on the sports-betting arena through its joint venture BetMGM, which forecast earlier this year more than $1.3 billion in revenue for 2022, as the coronavirus pandemic fuelled demand for online gaming.
"We have achieved remarkable success with BetMGM in the U.S., and with the acquisition of LeoVegas in Europe we will expand our online gaming presence globally," MGM Resorts Chief Executive Officer Bill Hornbuckle said in a statement.
LeoVegas, which has licences in eight jurisdictions primarily in the Nordics and rest of Europe, said it recommended its shareholders to accept MGM's offer.
The acceptance period of the offer will begin during June and expire on or around August 2022.
($1 = 9.8452 Swedish crowns)