As per the terms of the agreement, shareholders of the publicly-listed firm will be paid $29.5 per share in cash and upon the closing of the deal NeoGames will become a privately held company and its common stock will no longer be listed on any public market
Australia-based gaming content and technology company Aristocrat Leisure has agreed to acquire Israel’s iLottery and iGaming solutions provider NeoGames in an all-cash deal that represents an enterprise value of about $1.2bn for the Israeli firm.
As per the terms of the agreement, shareholders of the publicly-listed firm will be paid $29.5 per share in cash.
The consideration from Aristocrat represents a premium of about 104% over the volume-weighted average price of NeoGames’ shares for the three months ending on 12 May 2023.
Following the closing of the deal, NeoGames will become a privately held company and its common stock will no longer be listed on any public market.
NeoGames provides its customers with a full-service portfolio of solutions, including proprietary technology platforms, two dedicated game studios and a range of value-added services across iLottery, iGaming and online sports betting (OSB).
The firm has four complementary online RMG business units, namely NeoGames, AspireCore, Pariplay and BtoBet. It has around 1,100 employees and more than 200 customers across over 50 regulated markets.
NeoGames board of directors chairman John Taylor said: “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.
“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.”
Through the acquisition, Aristocrat expects to make an entry into the iLottery sector and offer major international growth opportunities globally across the online RMG industry.
The company also aims to offer material and exciting revenue opportunities by providing a complete solution to operators across online RMG verticals.
Aristocrat CEO and managing director Trevor Croker said: “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.”
Subject to the NeoGames’ shareholders’ approval and regulatory approvals along with other customary conditions, the deal is expected to be complete within 12 months.