Aristocrat Leisure Limited announced a deal to acquire 100% of NeoGames for a cash price of $29.50 per share. The transaction values NeoGames at approximately $1 billion.
According to CDC Gaming Reports, the Nevada Gaming Commission granted a license to the Israel-based NeoGames after the Gaming Control Board gave preliminary approval. Gambling regulators in Indiana reportedly will also look at the deal.
As a result of 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, lottery, and sports betting. According to Nevada-based Aristocrat, NeoGames has around 1,100 staff and more than 200 customers across 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 benefits, “positioning Aristocrat with global scale and capability immediately in the growing $81 billion online gambling market.”
“Bringing together NeoGames and our growing Anaxi business will position Aristocrat with global scale and capability in the growing online RMG industry,” Aristocrat CEO and Managing Director, Trevor Croker, said.
“We see great opportunities in the combination of our complementary businesses, with clear revenue and growth potential that comes with a complete and seamless online RMG solution. NeoGames also shares a strong commitment to sustainability, responsible gameplay, and people-first culture, which is central to everything we do.”
NeoGames CEO and Managing Director, Moti Malul, said: “We are excited to join one of the world’s most successful and respected gaming companies and be able to play a significant role in its future growth story.”
Aristocrat will fund the acquisition with cash on hand, including transaction expenses. The company said that it continues to focus its capital allocation on driving organic growth and investing in M&A opportunities.