NeoGames S.A, a famous provider of iLottery and iGaming content, will be acquired by Aristocrat Leisure Limited, a leader in the entertainment and content creation industry. The included parties signed a Business Combination Agreement, and NeoGames will get $29.50 per share, or $1.2. billion in total in all-cash transaction.
Reactions to acquisition:
NeoGames’ shares’ worth during the three-month period before the acquisition was 104% lesser than its acquisition price. The last trading day was May 12, 2023.
Chairman of the Board of Directors at NeoGames, John E. Taylor Jr., 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. 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, commented: “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.”
Things will change:
Aristocrat will get NeoGames’ will get the company’s statutory seat, registered office, and seat of central administration. They were situated in Luxembourg, but now they will be transferred to the Cayman Islands, where NeoGames will be merged with another fully-owned Aristocrat subsidiary. The NeoGames’ name will remain.
The NeoGames’ Board of Directors agreed with the decision, and the next step is a transaction. The current NeoGames shares will be canceled, and the company will get a fair amount of money in cash when it becomes a privately-held company. Its shares won’t be available on the public market anymore.
The whole process of the transaction might last up to 12 months, depending on various factors such as customary closing conditions, regulatory approvals, as well as the approvals of the current shareholders of NeoGames. They currently possess about 20.382.242 shares, which is about 61% of the total amount, and they agreed with an acquisition.
The financial advisor of NeoGames is Stifel, while the company’s legal counsels are Latham & Watkins LLP and Herzog Fox & Neeman.
NeoGames – an industry leader:
NeoGames is one of the industry leaders in the global market. It offers various services to many lottery and gaming operators, including its fantastic proprietary technology platforms, two game studios that produce captivating slot titles, as well as various value-add services. Additionally, the company’s portfolio includes an innovative sports betting platform that is very popular among customers and players and a modern content aggregation solution. Its customers can find various B2B gaming management and tech services.