LeoVegas makes M&A debut with €6m Winga acquisition

LeoVegas has completed the first major M&A deal in its history after acquiring Italy-facing operator Winga from Paf for €6.1m.

The all-cash deal for Winga.it will see the Stockholm-listed operator expand into Italy for the first time, while it also plans to gradually roll-out the LeoVegas brand in the market.

Winga recorded revenues of €8m last year, with approximately 50% derived from the company’s live casino business, but according to a statement today is currently showing a negative result.

However, LeoVegas said it had identified a number of areas to turn Winga’s current fortunes around, including adopting a data-driven approach to marketing and utilising its mobile technology.

The operator’s CEO, Gustaf Hagman, described the deal as a “milestone” in the operator’s history.

“The acquisition of Winga.it will enable rapid expansion in Italy, as we are acquiring a company with local knowledge and an established position,” he said.

“LeoVegas’ expansion strategy is to grow in markets that are either regulated or in the process of being regulated.

“Our focus on mobile gaming and our proprietary, flexible technology platform create the conditions for a successful acquisition.”

The deal for Milan-based Winga adds Italy to LeoVegas’ list of gaming licences in Malta, the UK, Denmark, Ireland and Italy.

Winga, which currently has 33 employees, was previously acquired by Åland-based firm Paf in January 2015 and was operated as a wholly owned subsidiary of the Paf group.

In a separate statement released this morning, Paf CEO, Christer Fahlstedt, said that the Italian market was no longer aligned with the company’s future strategy.

“We received a generous offer from the buyer, and the time was right to sell,” he said.

“We aim to grow primarily in markets that we know thoroughly as well as markets where Paf can be expected to become profitable in the long term,” Fahlstedt added.