Swedish mobile gaming company LeoVegas is acquiring all shares in Malta-based company Expekt Nordics Ltd. Expekt owns a Swedish gaming license and operates with Swedish customers under the Expekt brand. LeoVegas also signed an agreement to acquire assets related to Expekt from the company Mangas Gaming Ltd. The mobile gaming company will also gain rights to the Expekt brand and access the existing customer database.
The Net Gaming Revenue (NGR) for the acquired business amounted to EUR 6.9 million in 2020. In the fourth quarter of 2020, Expekt made around EUR 1.6 million in NGR, where 91% of it was attributable to the Swedish market. The purchase price represents a revenue multiple of 0.7x for 2020.
Under the deal, a commercial team made up of three people, together with LeoVegas’ central functions, will work on driving the brand forward. LeoVegas won’t be acquiring any technology, and technical migration to LeoVegas’ proprietary technical platform is begun. The technical migration and the acquisition is expected to be finalized by May 2021. Payment will be done in cash and will be funded with existing monetary resources.
“For those of us who grew up with online gambling in Sweden, Expekt is undeniably one of the pioneers in sports betting. I can remember back in the early 2000s when everyone played on Expekt. After a few years on the sidelines, we will now restore Expekt to its former glory as the leading sports betting brand,” Gustaf Hagman, LeoVegas Group CEO, said.
“We are working resolutely to offer the ultimate mobile sports betting experience, which will entail a number of new innovations and new thinking with a starting point from what a mobile experience an entail for the big years of sport in 2021 and 2022. This is a milestone for LeoVegas and represents a broadening of our strategy. We look forward to Expekt once again becoming a leading sports brand in Sweden and the Nordic countries,” he added.