Aristocrat Leisure Limited is acquiring NeoGames S.A., the two companies announced Sunday. Aristocrat will buy NeoGames for $29.50 per share, giving NeoGames an approximate value of $1.2 billion, representing a premium of 104% over the volume weighted average price of NeoGames’ shares for the three months ending on May 12, 2023.
NeoGames is a global leader in online lottery and iGaming services and solutions, providing its products to regulated lotteries and gambling operators. The entity owns sports betting provider BtoBet as well as content provider Pariplay.
NeoGames works with customers across the globe, including state lotteries in the United States including in Michigan, New Hampshire, North Carolina, and Virginia.
“The NeoGames team has built a great company with a strong platform and differentiated assets and we are pleased that Aristocrat recognizes the value we’ve created as a leader across iLottery, iGaming, and online sports betting,” John E. Taylor Jr., chairman of the board of directors of NeoGames, said in a press release. “After careful consideration, the Board determined that Aristocrat’s proposal provides shareholders with compelling value, further validating the strength of the business that NeoGames has built. We are pleased to have reached this agreement, which we believe benefits all of NeoGames’ shareholders as well as our various stakeholders.”
Details of the deal
Aristocrat is a well-known gambling company with a strong presence across the world. The Australian company has over 7,000 employees at more than 20 locations worldwide, and the company is a force in the poker and gambling-machine-making industry. The organization’s online gambling presence has grown dramatically over the last decade, and adding NeoGames gives Aristocrat access to the leading iLottery platform in the U.S.
“Through the acquisition of NeoGames and its industry-leading global online RMG platform, this transaction will deliver on our strategy by providing a portfolio of end-to-end solutions for iGaming, iLottery, and Online Sports Betting operators globally,” Aristocrat CEO Trevor Croker said in a press release. “We see great opportunities in the combination of our complementary businesses, with clear revenue and growth potential that comes with a complete and seamless online [real-money gaming] solution.”
Aristocrat acquiring NeoGames the more interesting and more significant deal than Fanatics/PointsBet for me #m&amonday
— James Kilsby (@JKilsbyDC) May 15, 2023
NeoGames’ board of directors unanimously approved the agreement. As part of the deal, NeoGames will transfer its statutory seat, registered office, and seat of central administration from Luxembourg to the Cayman Islands. NeoGames will become a wholly owned subsidiary of Aristocrat.
The deal is expected to be completed within the next year, with regulatory approvals and final shareholder approval needing to be granted.
“I am tremendously proud of our entire team at NeoGames, as together we have established our leadership position, driving our success across iLottery, iGaming, and online sports betting,” Moti Malul, CEO of NeoGames, said in a release. “We are delighted that the team at Aristocrat recognizes the significance of what we have built, and the strategic opportunity to combine our complementary businesses. We firmly believe that this Transaction represents a great outcome for all of NeoGames’ shareholders, customers, and employees.”
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