WEEKLY FEATURE: Aristocrat to Acquire NeoGames

Aristocrat Leisure Limited will acquire Israel-based online gaming solutions provider NeoGames SA for $1.2 billion, or $29.50 per share—104 percent higher than NeoGames’ pre-market price.

WEEKLY FEATURE: Aristocrat to Acquire NeoGames

Australian slot supplier Aristocrat Leisure Limited has agreed to acquire NeoGames SA, an Israel-based online gaming solutions provider that features end-to-end iLottery and iGaming solutions globally.

The deal is worth $1.2 billion, as Aristocrat has agreed to pay $29.50 per share in an all-cash transaction. That’s a premium of 104 percent over NeoGames’ three-month weighted average price.

The acquisition will give Aristocrat immediate entry into the global iLottery market and a boost to its penetration of online gaming markets.

“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 statement published by Reuters.

Aristocrat has noted that shareholders representing 61 percent of NeoGames’ outstanding shares have agreed to vote in favor of the deal. Aristocrat predicted the acquisition will add to its profit in financial year 2025.

“This deal completes the real-money-gaming build-and-buy strategy,” analysts at Citi wrote in a note. “While Aristocrat has paid a very significant premium, this deal clearly unlocks a runway to sustained growth.”

“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,” said John E. Taylor, Jr., chairman 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.”

Moti Malul, chief executive officer of NeoGames, added, “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.”

Under the terms of the acquisition agreement, NeoGames has agreed to transfer its statutory seat, registered office and seat of central administration from Luxembourg to the Cayman Islands and, as promptly as practicable thereafter, a wholly owned subsidiary of Aristocrat will merge with and into NeoGames, with NeoGames being the surviving company and a wholly owned subsidiary of Aristocrat.

The board of directors of NeoGames unanimously approved the agreement and has recommended the transaction. Following the consummation of the merger, all outstanding ordinary shares of NeoGames will be canceled and converted into the right to receive $29.50 per share in cash and NeoGames will become a privately held company and no longer be listed on any public market.

Completion of the transaction is expected to occur within 12 months, and is contingent upon customary closing conditions, including receipt of regulatory approvals and the approval of NeoGames’ shareholders.

The Nevada Gaming Control Board was set to hold hearings last week to consider NeoGames’ application for registration as a publicly traded corporation for licensure as the sole shareholder. The license application as a manufacturer and distributor is in addition to licensing for key executives in the company. The Nevada Gaming Commission had the matter on its agenda Thursday for its regular monthly meeting.

Separately, Aristocrat announced an increase of A$500 million ($339.2 million) to its existing share buyback program.