Aristocrat seals $1.2bn NeoGames takeover agreement

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Aristocrat Entertainment has reached an agreement to acquire NeoGames SA in a deal that values the latter at $1.2bn. 

Under the terms of the agreement, Aristocrat will pay a price of $29.50 per share, marking a 104% premium on the volume-weighted average price of NeoGames shares for the three months ending on 12 May 2023. 

This would value NeoGames at $1.2bn after the brand added significant value to its business last year via its own acquisitions of Aspire Global, comprising BtoBet, AspireCore and Pariplay.

Moti Malul, Chief Executive Officer of NeoGames, commented: “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.

“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.”

The deal is expected to close within the next 12 months, subject to shareholder and regulatory approval. NeoGames requires over two-thirds majority of shareholder approval to sanction the deal. 

Following the completion of the deal, NeoGames will transfer its statutory seat, registered office and central administration from Luxembourg to the Cayman Islands. Meanwhile, the firm would become merged with another wholly-owned subsidiary of Aristocrat. 

Noegames has a large presence in the iLottery and igaming markets in North America, with partnerships with lotteries including Michigan, AGLC, New Hampshire, Atlantic Lottery Corporation, Virginia, and North Carolina

It is also in the online casino market via its Pariplay brand with its Fusion aggregation platform, which supplies a series of large operators with thousands of online games. 

“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,” added John E. Taylor, Jr., Chairman of the Board of Directors of NeoGames. 

“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.”