LeoVegas Completes Deal for 51% of CasinoGrounds
The Swedish online casino operator has finalised a deal to purchase a 51% majority stake in the streaming network CasinoGrounds.
LeoVegas agreed to pay an initial SEK30m (£2.7m) in December 2017 but has now completed the deal. The agreement includes a potential maximum earn-out payment of SEK15m (£1.3m). The extra payment is based on revenue performance during the period from January 2018 to June 2018. LeoVegas, following its own assessment, expects the full earn-out payment will be made.
The Stockholm-based company, founded in 2011 by Gustaf Hagman and Robin Ramm-Ericson, also has the option to purchase an additional 29% of the shares in 2021 or 2022 at a figure of five-times operating profit.
CasinoGrounds provides a platform and social hub for online casino players interested in live streaming slots and casino games via video-sharing platform YouTube and streaming service Twitch. Streamers play a variety of games whilst providing commentary and responding to comments from viewers.
The site also features casino news, a forum and guides on the online gambling industry. It also reviews online casinos and acts as an affiliate, driving traffic to operator websites.
CasinoGrounds has created a new niche through its live streaming and social platform, which are highly appreciated by players. – Gustaf Hagman, Group CEO, LeoVegas
Gustaf Hagman, group chief executive of LeoVegas, said: “In CasinoGrounds we see a new behaviour in which persons interested in casino are watching others play casino via YouTube and Twitch.
“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.”
The deal follows LeoVegas’ takeover of Royal Panda for a fee reported to be around €60m (£53m) in October last year. Since launching six years ago, LeoVegas has achieved huge success. In 2015, four years into its life as a company, LeoVegas was already pulling in €83m (£73m) in revenue.
The acquisition was made through LeoVentures, a subsidiary of LeoVegas.