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Aristocrat Secures Shareholder Approval for NeoGames Takeover Bid

Last update: May, 2024

Written by: Andy Potts Editor
Aristocrat Secures Shareholder Approval for NeoGames Takeover Bid

Aristocrat Leisure, a leading Australian gaming company, has received a shot in the arm for its bid to takeover, NeoGames, another famous iGaming company. This is after shareholders of NeoGames gave the green light for Aristocrat Leisure to acquire the company. The deal will help Aristocrat diversify into the betting, gaming, and lottery sectors.

The investor clearance was the first of two that Aristocrat Leisure needs before it can complete the takeover of entire NeoGames operations. The shareholders also voted to ratify NeoGames’ statutory extension from Luxembourg to the Cayman Islands. NeoGames’s shareholders own at least 66% of the company’s shares and are therefore entitled to vote and present their views on any matter concerning its operations.

During the second meeting, the shareholders will vote again to approve the acquisition by Aristocrat. If everything goes according to plan, Aristocrat will proceed to table a formal bid and move through a yet-to-be-confirmed merger between the companies into a wholly owned subsidiary.

Aristocrat first agreed to terms to buy NeoGames in May 2023 for £29.50 per share, valuing the Nasdaq-listed gaming solutions group at $1.2 billion. This offer represents a 104% premium over the value of the company’s shares over the three months ended on May 12 and represents a $1.2 billion valuation of NeoGames.

The NeoGames Board has advised shareholders to support the acquisition because it believes the terms are reasonable. Shareholders of NeoGames, who collectively own around 20.4 million shares, had initially signed a contract to support the purchase.

Aristocrat CEO and Managing Director Trevor Crooker commented back then: “Bringing together NeoGames and our growing Anaxi business will position Aristocrat with global scale and capability in the growing online RMG industry. Through the acquisition of NeoGames and its industry-leading global online RMG platform, this transaction will deliver on our strategy by providing a portfolio of end-to-end solutions for iGaming, iLottery and Online Sports Betting operators globally.”

Before considering the benefits of revenue opportunities that may arise from the merger, the acquisition will be accretive to EPSA in the first full year of ownership (FY25). Aristocrat anticipates increasing profits because of its market-dominating content, enduring relationships with customers and authorities, and NeoGames’ cutting-edge platforms and technologies.

If the deal succeeds, Aristocrat will take over NeoGame’s iLottery operation, the BtoBet sportsbook, and the iGaming giants AspireCore and Pariplay. NeoGames purchased these leading brands last year after paying $480 million to Aspire Global.

It’s worth noting that the acquisition is still subject to clearances from regulatory bodies. According to Aristocrat, these procedures are progressing as anticipated.

The official company statement concluded: “Aristocrat and NeoGames are continuing to work together to progress the remaining steps required to complete the proposed acquisition, which Aristocrat continues to expect will occur during FY24.”

Aristocrat has been actively pursuing deals to acquire proven gaming brands and improve its market dominance. In early 2022, the company placed a £2.7 billion takeover bid for Playtech, a leading UK-based iGaming content supplier. Sadly, the deal did not materialize as expected.

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