Aristocrat Leisure, an Australian company, has announced its intention to purchase NeoGames SA, an iGaming provider headquartered in Israel, for about $1.2 billion. This update resulted in NeoGames‘ shares growing by 120%.
Before the market opened, NeoGames‘ shares in the United States were valued at $28.22, whereas Aristocrat closed with a 2.1% increase at A$39.51.
The business’s outstanding shares, listed in NASDAQ, will be purchased by Aristocrat for $29.50 each. A huge bonus of almost 130% above NeoGames‘ prior closing price of $12.84 is represented by this offer.
Aristocrat, headquartered in Sydney, expressed that the procurement will emerge them into the profitable yet strictly authorized iLottery field. They will also be able to increase their footprint in many virtual RMG industries.
This deal shows the fulfillment of Aristocrat’s strategy of both building and obtaining assets in the RMG industry. The analysts stressed that while Aristocrat contributed a huge amount, the deal certainly paves the path for the company’s consistent development.
For a long time, Aristocrat has been constantly seeking ways to upgrade its RMG sector.
NeoGames specializes in delivering products and services specifically designed, especially for the RMG industry. BtoBet, a wagering platform supplier, and Pariplay, an iGaming provider, are among the businesses grouped under NeoGames.
Aristocrat Chief Executive, Trevor Croker stated that the procurement of NeoGames and its highly regarded global virtual RMG platform aligns with their strategic goals. According to Croker, this agreement would allow Aristocrat to realize their ambition for a complete portfolio of available services in these industries by enabling them to provide an extensive variety of services to casinos, lottery, and wagering firms worldwide.
In individual declares, NeoGames mentioned that it has endorsed the suggestion, while Aristocrat revealed that shareholders owning over 60% of its shares have given their voice in favor of the procurement.
According to Aristocrat, the acquirement will boost the revenues in the fiscal year 2025.
Aristocrat has declared an additional $500 mln. (AUD) growth in its current share redeem system.
In early 2022, Aristocrat’s bid of 2.1 bln. (GBP) to acquire Playtech was unsuccessful as the sharers of the UK–based firm denied the proposal.