Aristocrat Leisure Limited has announced an agreement to acquire 100% of NeoGames for a cash price of $29.50 per share. The transaction values NeoGames at approximately $1 billion.
Second Center for Disease Control and Prevention Gaming Reports, the Nevada Gaming Commission granted a license to Israel-based NeoGames after the Gaming Control Board gave preliminary approval. Gambling regulators in Indiana will also reportedly be reviewing the deal.
Following the merger, NeoGames will become part of the Aristocrat Group.
NeoGames provides content and technology solutions for the online real money gambling industry, including online casinos, lotteries and sportsbooks. According to Nevada-based Aristocrat, NeoGames has approximately 1,100 employees and more than 200 customers in more than 50 regulated markets.
NeoGames has over 20 partners and 50 brands in Africa, Europe and Latin America.
Aristocrat said it believes the acquisition will accelerate its growth strategy and deliver strategic advantages, “positioning Aristocrat with global scale and capabilities immediately in the growing $81 billion online gambling market.”
“The combination of NeoGames and our growing Anaxi business will position Aristocrat in global scale and capabilities in the growing online marketplace RMG extension industry”, Aristocrat CEO and chief executive officer, Trevor Croker, said.
“We see great opportunity in combining our complementary businesses, with clear revenue and growth potential that comes from a seamless, comprehensive online RMG extension solution. NeoGames also shares a strong commitment to sustainability, responsible gameplay, and a people-centric culture that is central to everything we do.”
NeoGames CEO and Chief Executive Officer, Moti Malul, said, “We are thrilled to be joining one of the most successful and respected gaming companies in the world and to be able to play a significant role in its future growth story.”
Aristocrat will finance the acquisition with cash, including transaction fees. The company said it continues to focus its capital allocation on driving organic growth and investing in merger and acquisition opportunities.