Aristocrat pens $1.2bn deal to acquire NeoGames
Australian supplier continues with real-money gaming push in multi-billion-dollar deal for mixed vertical firm
Aristocrat has moved to bolster its online gaming aspirations with a $1.2bn acquisition of NeoGames.
The ASX-listed supplier giant has penned the cash deal which will see NeoGames’ shareholders receive $29.50 per share, with NeoGames to become a privately held company and no longer listed on any public market.
The transaction is due to be completed within the next 12 months, subject to standard closing conditions.
NeoGames’ shareholders, who currently possess 61% of the outstanding shares in the company, have executed a support agreement in relation to the deal.
NeoGames’ board of directors has unanimously endorsed the deal and recommended shareholders approve the transaction.
The $1.2bn purchase price represents approximately 104% over the volume weighted average price of NeoGames’ shares for the three months ending 12 May.
As part of the deal, NeoGames has agreed to transfer its statutory seat, registered office and seat of central administration from Luxembourg to the Cayman Islands.
During the transaction, Stifel is acting as NeoGames’ financial adviser while Latham & Watkins LLP and Herzog Fox & Neeman represent the company’s legal counsel.
The multi-billion-dollar move for NeoGames follows Aristocrat’s acquisition of Roxor Gaming from LiveScore Group earlier this year.
Following its failed bid for Playtech more than a year ago, Aristocrat has shifted its strategy to break into the online gaming side of the industry, with a concerted effort on cracking the North American market.
Moti Malul, NeoGames CEO, said the deal showed the stature of the NeoGames brand and its igaming capabilities.
Malul 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.”