Signing the £65 Million acquisition deal has been officially announced by the Swedish online casino and gaming company LeoVegas. They purchased all assets belonging to Intellectual Property & Software Limited (IPS) based in Alderney.
Not only did they buy IPS, but also included some related assets such as Rocket9 Limited, 21.co.uk, Slotboss, Bet UK and UK Casino in the shopping spree.
LeoVegas has, through its wholly-owned subsidiary, LeoVegas Gaming Ltd, entered an agreement to acquire assets from the gaming operator IPS and related assets from European Domain Management Ltd ("EDM"), both of which are based in Alderney, Channel Islands. In addition, LeoVegas has agreed, through a wholly-owned UK subsidiary, to acquire the assets of Rocket 9 Ltd ("Rocket 9"). Rocket 9 is a marketing services business based in Newcastle-upon-Tyne, UK.
At the London Stock Exchange LeoVegas came out with a confirmation of the purchase, stating that they will finance it partly in cash and partly in funds generated from the business’ debt financing. Those funds have been secured with the €60 million acquisition deal of Royal Panda in October 2017.
IPS itself, as a company, is more focused on data-driven customer acquisition from the UK mostly through mobile devices and uses a technical platform developed from the gaming supplier Bede Gaming.
At the very end of 2017 IPS reported revenues of £11.7 million and an adjusted EBITDA of £3.8 million. That is a solid 49% rise from the same period the year before.
Among other things, LeoVegas signed an agreement with Bede Gaming for their services stating that their platform is “very advanced from both a technical and product standpoint, thus a very good technology solution for the UK gaming market”
This deal is Getting LeoVegas to their third agreement under their belt for the past four months after the Royal Panda and the casino streaming provider CasinoGrounds purchases.
The CEO of LeoVegas, Gustaf Hagman, acknowledged and strongly supported their first deal for 2018 stating: "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, multi-brand 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."