LeoVegas, a part of the MGM brand, has acquired Push Gaming, a much-awaited development after both parties signed an agreement for the acquisition. This is the first major acquisition by LeoVegas since becoming a part of the MGM ecosystem. However, it begs the question of why the deal was necessary.
To put it right on the table, the agreement by LeoVegas to acquire Push Gaming makes sense by aligning with the current market trends. Many operators are on a spree to acquire game developers so as to get the department in-house instead of leaving it to a third party.
For example, Kindred has acquired Relax Gaming, Flutter has acquired Stars Group, and Entain now houses CR Games. This does fairly well in terms of average page position and the quality of the gaming portfolio.
Push Gaming was founded in 2010 in the United Kingdom and has 50 games available on 450 sites. However, according to the acquisition agreement, LeoVegas transferred $150 million. Meaning that Push Gaming releases games less frequently than its competitors. However, the quality of games provided by Push Gaming stands out.
There are 1332 URLs running its games, compared to 825 for Tiers 1–2 combined. The same category sees 290 and 258 for gaming studios and operator groups, respectively.
Push Gaming is featured on 459 operator sites, compared to 277, 120, and 84 for operator groups, studio groups, and Tier 1-2 operator groups plus studio groups, respectively.
The announcement to acquire Push Gaming follows the signing of the agreement for the same. LeoVegas and Push Gaming announced the signing of the acquisition agreement in early May 2023. A definite timeline was not mentioned, but a commitment was made to conclude the acquisition at the earliest.
LeoVegas acquisition of Push Gaming is part of its mission to expand into the iGaming segment.
The emphasis is on leveraging the game provider’s proprietary technology, development experience, and intellectual property. Following the successful acquisition, LeoVegas has committed to maintaining the same management structure for all employees, without any form of layoffs.
The acquisition will probably affect page ranking. MGM ranks 451st on the average page position of Push Gaming’s games, which is 48% higher than the rank of other titles. For example, Entain has a grade of -55% in the same category.
Also, MGM is in the list of the Top 25, while Entain is outside the Top 20. 888 has seen a negative average, too, and currently sits outside the Top 20.
The current market trend alludes to the possibility of retaining game suppliers in-house to launch exclusive titles for a few days. This depends heavily on the level of authority each operator possesses.
More numbers are expected to come out after the acquisition yields some results. Until then, reports are doing the rounds claiming the acquisition is worth $150 million. A clear dialogue on that also remains to be seen.