Solutions Provider NeoGames Shares to be Bought by Aristocrat in $1.2 Billion Deal
Published May 16, 2023 by Lee R
A prodigious stock agreement has been reached to bring NeoGames under the Aristocrat umbrella.
Technology-driven iLottery and iGaming solutions provider NeoGames has entered into an agreement to be bought by Aristocrat Leisure Limited.
The Deal
The Business Combination Agreement calls for entertainment and creation company Aristocrat Leisure to purchase NeoGames shares for $29.50 each in cash.
Aristocrat’s Layout
Delivering world-leading mobile and casino games, Aristocrat will purchase NeoGames for a cumulative share value of $1.2 billion.
Value Boost
A premium weighted average calculated to approximately 104% over the volume weighted average price of NeoGames’ shares was applied for the 3 months ending on May 12, 2023, the last day of trading before the agreement was announced.
NeoGames Chairman Speaks
NeoGames Chairman of the Board John E. Taylor Jr. commented on the proceedings warmly:
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.
Loving the Offer
Taylor Jr. further discussed the appeal of the Aristocrat offer:
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.
NeoGames CEO Speaks
NeoGames CEO Moti Malul expressed his own organisation’s pride in the proceedings:
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.
Recognising Aristocrat
Malul tipped his cap to the Aristocrat team as well:
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.
Relocation
The new agreement calls for NeoGames to transfer its statutory seat, registered office, and seat of central administration from Luxembourg to the Cayman Islands.
Restructure
Then a wholly owned subsidiary of Aristocrat will merge with NeoGames so that NeoGames will be the name of the surviving subsidiary of Aristocrat.
Stock Conversion
The NeoGames Board of Directors has unanimously approved the Agreement, with that recommendation opening the door for all outstanding ordinary shares of NeoGames to be canceled and converted into certificates of $29.50 per share and become a privately-held company no longer be listed publicly anywhere.
Outlook
Closing in 12 months, the deal sets a high standard for stock-based iGaming mergers as Aristocrat absorbs a whole new level of solutions while NeoGames stakeholders enjoy substantial ROI come to fruition.
