LeoVegas Looks to Grow Betting Potential with Expekt Acquisition
Expekt is among the pioneer digital wagering brands in Sweden and the Nordics, as a whole, and is one of the region’s most popular operations, as well.
LeoVegas said that it has agreed to pay €5 million for the latest addition to its ever-growing family. This newly announced acquisition strengthens the company’s portfolio of brands, which currently includes 13 operations including flagship LeoVegas. The transaction is also expected to strengthen the group’s position in sports gambling and expand its growth opportunities in the lucrative segment.
Under the terms of the deal, LeoVegas will acquire all of the shares of Malta-based company Expekt Nortics Ltd. The latter operator holds a license from the Swedish Gambling Authority, Spelinspektionen, and operates in Sweden under the Expekt brand.
LeoVegas has also entered into an agreement with Mangas Gaming Ltd. to purchase all assets related to the Expekt operation, including all rights to the brand and access to its bettor database. Expekt generated revenue of just under €7 million last year and is a profitable business.
News about the transaction emerge days after LeoVegas made another big announcement. The operator last week rolled out its new Android gambling app in Sweden, Denmark, and Spain in an industry first after Google permitted certain gambling products to be uploaded on its Play Store.
Acquisition Doesn’t Include Technology
LeoVegas said that the acquisition of Expekt does not include technology and that the necessary technical migration to the company’s in-house platform has already begun. The process is expected to be completed by May and ahead of this year’s major sporting events.
The company also noted that it will pay for what would be the 14th brand to operate under its umbrella in cash and will finance the payment with existing funds.
Most of the gambling group’s operations are focused at providing online casino experience. In the final quarter of 2020, sports wagering accounted for just 9% of its overall revenue. LeoVegas said that the acquisition of Expekt, combined with its own internal product and initiatives related to enhancing customer experience, will help it grow its sports betting business and revenue from its wagering offering over time.
Expekt was first launched in 1999 and quickly gained pace as a preferred betting destination for Swedish and Nordic sports fans. The operation was purchased by its current owner, Betclic, in late 2009.
The brand’s market share in the region has declined in recent years due to increasing competition, but brand awareness has remained extremely high among relevant target groups.
Source: “LeoVegas Acquires Expekt”, LeoVegas Newsroom, March 15, 2021
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