Australian gaming giant Aristocrat Leisure Limited said Monday morning that it has reached an agreement to acquire 100% of Luxemburg-based gaming platform provider NeoGames S.A. for a total consideration of US$1.2 billion.
Announcing the planned acquisition via an ASX filing, Aristocrat said the deal remains subject to NeoGames shareholder approval but revealed it has been recommended by the NeoGames Board of Directors and that shareholders representing 61% of its outstanding shares have already agreed to vote in favor.
The agreement, Aristocrat added, comprises a cash price of US$29.50 per share which represents a premium of 104% to the three-month volume weighted average price of NeoGames shares for the period ended 12 May 2023 of US$14.45. This price implies an enterprise value of US$1.2 billion, it said.
NeoGames is described as a global leader in content and technology solutions for the online RMG industry, with the full-service suite including content, proprietary technology platforms and a range of value-added services across iLottery, iGaming and Online Sports Betting. The company currently has around 1,100 staff and more than 200 customers across more than 50 regulated markets.
Aristocrat explained that the acquisition delivers on its online RMG (real money gaming) strategy and accelerates growth by immediately positioning the company with global scale and capability, with a “particular opportunity for expansion in the large, growing and still relatively nascent North America segment, as well as more broadly across Europe and Rest of World markets.”
Aristocrat CEO and Managing Director Trevor Croker said, “Bringing together NeoGames and our growing Anaxi business will position Aristocrat with global scale and capability in the growing online RMG industry.
“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. 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 RMG solution.
“NeoGames also shares a strong commitment to sustainability, responsible gameplay and people-first culture which is central to everything we do.
“This proposed acquisition builds on the strength and resilience of our business, expands market opportunities and adds capabilities to unlock our full potential. We remain focused on executing our proven growth strategy, and creating long-term value for Aristocrat shareholders.”
The acquisition, to be funded by cash on hand, is expected to be completed in 2024.
Aristocrat has been actively looking to expand its Real Money Gaming (RMG) assets in recent months, including via the acquisition of B2B online supplier Roxor Gaming in February. The company was previously engaged in a failed attempt to acquire UK-based platform provider Playtech plc as part of which it raised US$965 million via retail and institutional entitlement offers.
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