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New Partnership Between Royal Panda & Leo Vegas Signed
LeoVegas, one of the world’s leading developers of online casino games for mobile devices, will be acquiring the assets of online casino operator Royal Panda the company said in a statement.
Technically, LeoVegas will be acquiring Web Investments Ltd., which owns the popular online casino, for approximately $70m in cash upfront. If the Royal Panda brand continues to perform well there is the possibility of an additional $70m in payments over the course of the next year.
Two Big Names Combine Their Clout
LeoVegas’ CEO Gustaf Hagman praised the deal in a statement, expressing optimism that the addition of such a well known brand will be a great addition to add to LeoVegas’ already strong reputation.
“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,” he said.
Worldwide Growth Expected
It’s no surprise that the financial incentives LeoVegas and Web Investments Ltd. agreed to target global benchmarks. Both companies are already well known to players around the globe. The fact that Royal Panda’s most recent financial report showed they company earned upwards of $3m in Q3 of this year alone also didn’t hurt.
However, the strong mobile presence of the Royal Panda brand undoubtedly also played a large role in LeoVegas’ decision to acquire it. Strong mobile presence is not easy in a competitive market, and directly acquiring a brand that already has it is a huge asset it today’s landscape. This fact in large part explains why LeoVegas took out a $100m loan to finance the purchase, rather than miss out on an excellent opportunity for the future.
“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,” Hagman said.