Aristocrat Agrees to Purchase NeoGames for $1.8 Billion

On May 15, 2023, Aristocrat Leisure Limited, a popular gaming entertainment company based in Australia, openly declared plans to purchase 100% shares in NeoGames. The company plans to acquire each share for $29.50 and the transaction documentation will be published on the NASDAQ platform. 

According to Aristocrat, the total value of NeoGames' equity is approximately $1.0 billion, with a premium of around 104% compared to the 3-month volume average price before May 12, 2023. Back then, the company says, each share was valued at $14.45, giving a mathematical enterprise value of $1.8 billion.

The takeover will be subject to a few regulatory procedures, including necessary approvals from NeoGames' shareholders and regulatory authorizations. 

The good news is that Aristocrat Leisure Limited can expect to do business after NeoGames’ Board approved the deal and advised shareholders to back the takeover. NeoGames' shareholders collectively own 20.4 million shares in the company, 61% of the total shares. 

Brief Overview of NeoGames

Founded in 2005, NeoGames is a leading content developer based in Israel. The company is famous for its lottery, sports betting, and mobile casino games, partnering with popular state-run lotteries to offer top-class iLottery technologies and unmatched gaming services. 

Seasoned mobile scratch card players must already know NeoGames' collection titles, including

• Pirate Quest
• Underwater Treasures
• Savanna Adventures
• Queen of Diamonds
• Big Crush Multiplier

These games and many others in the company’s portfolio are available in 200+ mobile casino apps and leading lottery venues in 50+ regulated markets. Players access these games through NeoGames' different RMG online business units, including:

• NeoGames
• AspireCore
• Pariplay
• BtoBet

Official Statement

Commenting on the Acquisition, Revor Croker, Aristocrat's CEO and Managing Director said adding NeoGames to Anaxi's burgeoning enterprise gives Aristocrat worldwide scope and aptitude in the flourishing online RMG sector. The official praised NeoGames' robust commitment to sustainability, responsible play, and people-first culture.

Croker concluded:

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.

On their part, NeoGames' CEO and Managing Director, Moti Malul, said the company is thrilled to join Aristocrat and play a key role in its future development. 

Malul added:

We are very proud of our people and teams that have brought us to a leadership position and delivered achievements across the areas of iLottery, iGaming and Online Sports Betting, which enabled this exciting combination. We have no doubt that together with Aristocrat we will become a global leader in online Real Money Gaming, providing unparalleled products, services and game content to our entire customer base and industry.