Shareholders of NeoGames have voted in favor of approving the $1.2bn takeover from Aristocrat Entertainment which was announced in May.
Of the 86% voter turnout, over 99% of shareholders backed the deal as well as other measures including the relocation of the firm’s statutory continuation from Luxembourg to the Cayman Islands.
This is the first of two rounds of shareholder approval before the deal can be formally ratified. This secondary vote requires approval of at least two-thirds of shareholders at a special meeting, but nevertheless, NeoGames noted that the first approval is a significant step.
“This approval represents one of the substantial milestones towards completing the proposed acquisition,” a NeoGames statement read.
“Aristocrat and NeoGames are working together to progress the steps required to complete the proposed acquisition, which is expected to occur during the first half of fiscal year 2024.”
As per the original 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.
NeoGames 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,” John E. Taylor, Jr., Chairman of the Board of Directors of NeoGames, said when the deal was announced.
“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.”
