Shareholders at Aristocrat Have Greenlit the Proposed Acquisition of NeoGames

Aristocrat Aristocrat Leisure, a heavyweight in Australian gaming, has taken a significant leap in its bid to absorb NeoGames, a notable iGaming entity. This follows NeoGames shareholders giving the nod to Aristocrat Leisure's plan to buy the company. The acquisition aligns with Aristocrat’s goals to diversify its stake in gaming and lottery markets.

The yes-vote from investors marked the first of two requisites Aristocrat needs to close the complete takeover of NeoGames’ operations. Additionally, shareholders accepted NeoGames' legal transfer from Luxembourg to the Cayman Islands. Given that shareholders possess a sizable 66% of NeoGames’ shares, they have the right to weigh in and deliberate on issues relating to the company.

A follow-up meeting is set where shareholders will again voice their approval for Aristocrat's acquisition. If proceedings progress without a hitch, Aristocrat will proceed to make a formal offer, followed by an unconfirmed merger transitioning the companies to a purely owned subsidiary.

In May 2023, Aristocrat consented to acquire NeoGames at £29.50 per share, bringing the Nasdaq-listed gaming enterprise’s worth to $1.2 billion—valued 104% higher than its three-month trailing share price ending May 12.

NeoGames' executive board has urged shareholders to back the acquisition citing reasonable offer terms. Investors, collectively holding about 20.4 million shares, previously consented to a purchase-support contract.

Trevor Crooker, CEO and Managing Director of Aristocrat, previously stated: “The merger of NeoGames with Anaxi will fortify Aristocrat’s global footprint and proficiency within the burgeoning RMG online scene. Through acquiring NeoGames' cutting-edge online RMG infrastructure, we aim to equip operators worldwide with end-to-end solutions for iGaming, iLottery, and Online Sports Betting.”

Additionally, before revenue opportunities from the merger get assessed, the acquisition is estimated to be EPSA positive in its inaugural full year (FY25). Aristocrat anticipates revenue growth, attributed to rich market content, stable relations with clientele and regulators, alongside NeoGames’ leading platforms.

Should the acquisition finalize successfully, Aristocrat will take over operations of NeoGames' iLottery segment, BtoBet sportsbook, plus renowned iGaming players AspireCore and Pariplay—acquired by NeoGames last year post a $480 million transaction with Aspire Global.

The acquisition still awaits nods from governing agencies. Aristocrat reports that related undertakings are moving ahead as planned.

The formal communiqué from Aristocrat concluded: “Aristocrat and NeoGames remain committed to meeting the outstanding requirements to finalize the proposed acquisition, anticipated within FY24.”

Aristocrat continuously seeks mergers to consolidate its dominance in the gaming sector. Notably, in early 2022, Aristocrat tendered a £2.7 billion proposal for Playtech, a leading iGaming provider out of the UK. Regrettably, this initiative fell short of its goals.