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LeoVegas to acquire rapidly growing UK casino operator for MGBP 65

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“LeoVegas” signed a deal to procure the assets of Intellectual Property & Software Limited (“IPS”) and associated assets from two other companies, comprising of some of the supreme brands namely 21.co.uk, Slotboss, Bet UK and UK Casino. IPS generated revenues of GBP 11.7 million in association with the companies whose assets are also being acquired as part of the transaction, an adjusted EBITDA* of GBP 3.8 million during the fourth quarter of 2017 the acquisition will be financed by cash and from existing debt facilities for a total consideration of GBP 65.0 million (EUR 73.5 million). The acquisition will further foster LeoVegas’ presence in the UK and its position as the leading mobile operator.

About the acquisition
Through its wholly-owned subsidiary, LeoVegas Gaming Ltd, LeoVegas signed a deal to procure assets from the gaming operator IPS and associated assets from European Domain Management Ltd (“EDM”), which are based in Alderney, Channel Islands. Along with this LeoVegas has agreed, through a wholly-owned UK subsidiary, to procure the assets of Rocket 9 Ltd (“Rocket 9”). Rocket 9 is a marketing services business based in Newcastle-upon-Tyne, UK.

During the fourth quarter of 2017 IPS had revenues of GBP 11.7 million and, together with EDM and Rocket 9, adjusted EBITDA* of GBP 3.8 million, representing an EBITDA* margin of 32.6%. Revenue for the fourth quarter of 2017 grew by 49% compared with the fourth quarter of 2016. Of IPS’s total revenue**, 96% comes from the UK and 73% via mobile devices. The transaction is subject to certain closing conditions, and is scheduled to close late in the first quarter of 2018.

Financing
In connection with the 2017 acquisition of Royal Panda, LeoVegas secured debt financing of EUR 100 million. Of this amount, EUR 40 million consists of a Revolving Credit Facility. The facility has a term of three years, and amortisation will begin during the second quarter of 2019 at EUR 10 million per quarter. Interest on the facility is approximately 2%. This loan is now partly being used for this acquisition.

Gustaf Hagman, LeoVegas’ Group CEO, comments: “To be able at our 6-year anniversary of the launch of LeoVegas to conduct this remarkable acquisition feels just great! Since its start, LeoVegas has pursued a highly successful global brand strategy. Following the acquisition of Royal Panda, LeoVegas now works with two scalable brands. We believe that in larger markets our global brands, LeoVegas and Royal Panda, can be complemented with a local, multibrand strategy. The UK market is a very large and mature market and that is the reason to work with several brands that attract various types of customers. In IPS we see several attractive attributes, and they have tremendous momentum in their growth and profitability. Combined with one of the market’s most effective customer acquisition models, we are now gaining a firm stronghold in the UK with the acquisition of 85 employees with local expertise. With this acquisition, we are adding a company culture with a strong technology and product focus which is a perfect fit with LeoVegas’ to further strengthen the Group’s position as the leading GameTech company.”

IPS 
IPS’s strategy focusses on digital and data-driven customer acquisition that incorporates keyword optimisation with multiple brands and customer acquisition sites. As a result, IPS operates one of the market’s most effective customer acquisition models. This strategy, which is based on demographic segmentation and targeting, state-of-the-art technology and multiple customer acquisition sites, is optimised so that it can efficiently and effectively reach all potential customers from the online gaming category.

IPS currently uses a technical platform from Bede Gaming, and in connection with the acquisition LeoVegas has entered into a services agreement with Bede Gaming. During the due diligence process, LeoVegas has determined that Bede’s platform is very advanced from both a technical and product standpoint, thus a very good technology solution for the UK gaming market.

*EBITDA is adjusted for a platform agreement in which EBITDA for Q4 2017 has been recalculated as if the agreement that LeoVegas has for the platform from the closing date of the acquisition applied for the entire Q4 2017. IPS has conducted limited white label business that has contributed to sales for 2017, but which has had a neutral effect on EBITDA. This business is not included in the transaction. Some minor cost items in the month of December have been estimated.

** Including revenue and player activity of IPS derived from the white label business

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 08:00 CET on 12 January 2018.

For further information, please contact:

Gustaf Hagman, Group CEO co-founder: +46 708805522,

[email protected]
Viktor Fritzén, Group CFO: +46 736122667,

[email protected]
Philip Doftvik, Head of Investor Relations: +46 735120720,

[email protected]
Visitors address: Luntmakargatan 18, Stockholm
Corporate identity number: 556830-4033

About the LeoVegas mobile gaming group
LeoVegas’ passion is “Leading the way into the mobile future”. LeoVegas is Sweden’s premier GameTech company and is at the forefront of using state-of-the-art technology for mobile gaming. In 2017, the company passed the threshold for being classified as a unicorn, i.e., a start-up valued at more than USD 1 billion. A large part of this success can be credited to an extreme product and technology focus coupled with effective and data-driven marketing. Technology development is conducted in Sweden, while operations are based in Malta. LeoVegas offers casino, live casino and sport gaming, and operates two global and scalable brands – LeoVegas and Royal Panda. The company’s shares are listed on Nasdaq First North Premier, and Avanza Bank AB is the company’s Certified Adviser. For more about LeoVegas, visit www.leovegasgroup.com.

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STARCASINÒ SPORT BECOMES AS ROMA’S NEW PREMIUM PARTNER

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STARCASINÒ SPORT BECOMES AS ROMA'S NEW PREMIUM PARTNER
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AS Roma is pleased to announce a new partnership with StarCasinò Sport, a sports infotainment website, that sees the site become a new Premium Partner of the club.

Thanks to this new partnership, Roma fans will be able to stay up-to-date with all the latest news on their favourite team and enjoy exclusive content dedicated to them – including the ‘Roman Experiences’ video unveiled to mark the announcement of the partnership.

The opportunities for Giallorossi fans will not stop there: from today, in fact, they will be able to win exclusive prizes, thanks to the competition ‘The New Way of Experiencing Rome’.

“We are particularly happy with this partnership – we wanted to work with AS Roma both for its significance as a club and for the unique bond between the city and the team, identifying the fans as the true heart of football, just like StarCasinò Sport does,” said Stefano Tino, Managing Director of StarCasinò Sport.

“What is more, with the recent arrival of the new ownership an ambitious new football environment has been created and the foundations are being built for a successful future on a global scale.

“We are confident that we will achieve great things together.”

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eSports

BETBY rolls out eSports offering as standalone product

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BETBY, the innovative sportsbook supplier, has completed the isolation of its eSports solution to ensure it can be added to operators brands as an individual arm, further adding value to its client base.

The eSports offering sees more than 20,000 events run every month, with 22 different disciplines and more than 56,000 Betby.Games events also able to be bet on every month.

Through the breadth of official data via a number of partners, BETBY is able to give market-leading coverage of an extensive array of eSports competitions.

Included in the stand-alone solution is the proprietary Betby.Games offering, which now boasts eight products across over 30 leagues in the portfolio, guaranteeing 30 live events concurrently, as well as a full suite of business tools and customisable features. 

The separation of the offering further highlights the agility and flexibility of BETBYs platform, with the provider live in key markets across the globe and offering scalable solutions to fit individual operators needs.

Leonid Pertsovskiy, CEO at BETBY, said: Our eSports and Betby.Games offerings allow us to bring the highest quality of betting experiences to players. Now, as an isolated product, were able to bring it to a wider client base than ever before, integrating it as a standalone solution, rather than as part of the sportsbook.

Naturally, this significantly expands its potential, allowing us to work with more operators and further expand BETBYs presence globally.

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Asia

Samurai Studio® by NatsumeAtari teams up with SwinttStudios

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Award-winning software providers, Swintt, and Japanese entertainment company, Samurai Studio ® by NatsumeAtari, are delighted to announce they will be joining forces this month, with the latter preparing to distribute games via the SwinttStudios partnership program.

Rolled out earlier this year, SwinttStudios is a game-changing initiative developed by the Malta-based company that allows boutique software providers to develop and distribute games within the existing Swintt framework. It enables partners to focus mainly on the design and theme of their titles while Swintt handles game logic and product delivery, providing a smoother creative process for all parties.
As one of the few video slot developers in Japan that can already boast global operations, Samurai Studio® will use the opportunity to tap into Swintt’s extensive distribution network and useful back-end tools, extending its brand outreach even further by releasing games in a number of new markets.

With history dating back to 1987, NatsumeAtari was first established as a business that provided technology, artwork and services to video game companies and pachinko machine developers. With a group philosophy that reads “happiness to everyone involved with NatsumeAtari”, it wasn’t until October 2020 that Samurai Studio® was created and the group turned its hand to video slot creation.
NatsumeAtari will now use this industry experience to develop a series of exclusive games via the SwinttStudios partnership program, giving new and existing players alike the chance to experience a range of outstandingly-crafted video slots that each come with their own unique themes and features.

The news will certainly be welcomed by customers at many of Swintt’s partner casinos as more and more exclusive content lands in their lobbies – and the popular software studio has vowed that it will continue to increase the number of titles released via its partnership program in the coming months. Now with the full power of the SwinttStudios product vertical at its disposal, Samurai Studio® will be able to further expand its innovative collection of online video slots while distributing its games to brand new audiences in a collaboration that both parties clearly have high hopes for going forwards.

David Mann, Chief Executive Officer at Swintt, said: “With NatsumeAtari having only launched Samurai Studio® two years ago, we’ve been impressed with what the developer has already achieved in such a short space of time – but with SwinttStudios, we’ll be able to help them reach the next level.
“Having seen the studio’s flair for design and innovation, we’ll now be able to take the nuts and bolts of game logic and product delivery off their hands. This will enable them to make cutting-edge game development their main priority as our distribution network makes sure that the exclusive games they create via the SwinttStudios partnership program reach all the markets where they need to be seen.”

Mitsuhiro Koide, Chief Operating Officer at NatsumeAtari, said: “Having founded our company with a mission to spread happiness to everyone involved with NatsumeAtari, we’re delighted the joy we provide to players will now reach even further through our partnership with SwinttStudios.
“By joining forces with Swintt for this exciting venture, our talented team of designers and developers can focus on creating the most immersive and enjoyable games possible while Swintt’s distribution solutions and in-depth industry know-how help us put our product in front of a brand new audience.”

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