Interactive
UK – LeoVegas snaps up IPS and Rocket 9
By Phil - 15 January 2018
LeoVegas is buying the assets of Intellectual Property & Software Limited and other related assets from two further companies, including top brands such as 21.co.uk, Slotboss, Bet UK and UK Casino.
During the fourth quarter of 2017, IPS generated revenues of £11.7m and, together with the companies whose assets are also being acquired as part of the transaction, an adjusted EBITDA of £3.8m. The acquisition will be financed by cash and from existing debt facilities for a total consideration of GBP 65.0 million (€73.5m). The acquisition will further strengthen LeoVegas’ presence in the UK and its position as the leading mobile operator.
LeoVegas will buy the assets from European Domain Management, based in Alderney, Channel Islands. In addition, LeoVegas has agreed, through a wholly-owned UK subsidiary, to acquire the assets of Rocket 9, a marketing services business based in Newcastle-upon-Tyne, UK.
Gustaf Hagman, LeoVegas’ Group CEO, said: “To be able at our six-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, multibrand 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.”
IPS’s strategy focusses on digital and data-driven customer acquisition that incorporates keyword optimisation with multiple brands and customer acquisition sites. As a result, IPS operates one of the market’s most effective customer acquisition models. This strategy, which is based on demographic segmentation and targeting, state-of-the-art technology and multiple customer acquisition sites, is optimised so that it can efficiently and effectively reach all potential customers from the online gaming category.
IPS currently uses a technical platform from Bede Gaming, and in connection with the acquisition LeoVegas has entered into a services agreement with Bede Gaming. During the due diligence process LeoVegas has determined that Bede’s platform is very advanced from both a technical and product standpoint, thus a very good technology solution for the UK gaming market.
