LeoVegas will pay €60m upfront and €60m in additional earn-out payment if Royal Panda generates €50m NGR and €15m EBITDA in 2018.
Last week, Nasdaq Stockholm-listed LeoVegas announced to have entered into an agreement to acquire all of the shares in Malta-based Royal Panda.
LeoVegas agreed to pay €60 million upfront and up to €60 million in additional earn-out payment if certain financial milestones are met within 12 months.
For the earn-out to be paid, Royal Panda has to generate in 2018 at least €50 million in Net Gaming Revenue, with a minimum of €34 million derived from the UK, and at least €15 million EBITDA, with a minimum of €5 million from the UK.
The acquisition of Royal Panda is reportedly in line with LeoVegas strategy to continue to grow the business in regulated markets.
Royal Panda recently added a sportsbook to work alongside its popular online casino and LeoVegas believes the brand will do well with sports bettors.
“Royal Panda has in a short time built up an efficient business with an exciting and strong brand. This is a major acquisition that we are carrying out following a carefully executed process. With the help of the strong symbolic value in the panda, the company has built a premium brand among gamers, and we will complement LeoVegas with Royal Panda. This gives us two great brands with global appeal, which makes the scalability in the continued growth strong while strengthening our position in the UK,” stated LeoVegas Chief Executive Gustaf Hagman.
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