Aristocrat has entered into a definitive combination agreement that will see the group acquire NeoGames for $29.50 per share, which represents a total value of approximately $1.2bn.
The ASX-listed group has consistently maintained lofty online gaming ambitions after a lengthy $2.7bn Playtech pursuit collapsed in early 2022, while the past year also saw NeoGames bolster its own operations via the $470m acquisition of Aspire Global.
“The NeoGames team has built a great company with a strong platform and differentiated assets and we are pleased that Aristocrat recognises the value we’ve created as a leader across ilottery, igaming and online sports betting,” commented John Taylor, Jr, Chair 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.”
The transaction has been unanimously approved by NeoGames, which will merge with a wholly owned subsidiary of Aristocrat and become a privately-held company that is no longer listed on any public market.
The purchase price represents a premium of approximately 104 per cent over the volume weighted average price of NeoGames’ shares for the three months ending on May 12, 2023, the last trading day prior to the announcement.
Completion, which is contingent on customary closing conditions such as regulatory and shareholder approvals, is expected to occur within 12 months, following which all outstanding ordinary shares of will be cancelled and converted into the right to receive $29.50 per share in cash.
In addition, it is also disclosed that shareholders that hold in the region of 20,382,242 shares, around 61 per cent of outstanding shares, have executed a support agreement to vote in favour of the transaction.
Moti Malul, Chief Executive Officer of NeoGames, said: “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 recognises 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.”