LeoVegas investment arm acquires casino streaming network
GameGrounds purchased for SEK 30m with a potential maximum earn-out payment of SEK 15m
LeoVegas’ investment arm LeoVentures has acquired 51% of the shares of casino games streaming platform GameGrounds Unite AB.
The operator will pay a purchase price of SEK 30m (£2.6m), with a potential maximum earn-out payment of SEK 15m (£1.3m), which LeoVegas said it expects to pay.
The acquisition is expected to close on 1 January 2018.
GameGrounds operates the casinogrounds.com online streaming network, which also provides an chat forum for players and viewers.
The firm reported a revenue of SEK 4.1m (£0.36m) for Q3 2017 and has “good profitability,” according to a statement by LeoVegas.
LeoVegas group CEO Gustaf Hagman said the viewing of casino games via YouTube and Twitch TV could be a profitable niche.
“The combination of proprietary content and the moving picture format creates exciting opportunities going forward and is in line with LeoVegas’ strategy to be an innovative and entrepreneur driven company,” Hagman said.
“LeoVegas has had successful cooperation with CasinoGrounds since 2016, and we know their team well. Our ambition is now to scale up existing operations to more markets,” Hagman added.
The firm recently appointed co-founder Robin Ramm-Ericson as LeoVentures managing director, as part of a strategic move to boost invest in technology and innovation.