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Aristocrat Leisure To Buy Israel's NeoGames For $1.2 Bln

Updated: May 16, 2023


Aristocrat Leisure to buy Israel's NeoGames for $1.2 bln

Aristocrat Leisure, the Sydney-based gambling machine maker, has announced its agreement to acquire NeoGames SA, an Israel-based software firm, for $1.8 billion (AUD) ($1.2Billion USD)


This acquisition aims to enhance Aristocrat's online presence and strengthen its foothold in the real-money gaming (RMG) sector.


Under the deal, Aristocrat will pay $29.50 per share to acquire 100% of NeoGames' shares, representing a significant premium of approximately 130% to NeoGames' last closing price of $12.84.


Aristocrat's CEO, Trevor Croker, expressed excitement about the combination of their businesses and the revenue and growth potential that comes with a comprehensive online RMG solution. This acquisition will provide Aristocrat entry into the regulated iLottery market and enable further expansion into other online RMG verticals.


NeoGames specializes in providing content and technology solutions for the online RMG industry. The acquisition has received a positive recommendation from NeoGames' board, and shareholders representing 61% of the outstanding shares have agreed to vote in favor of the deal.


Analysts at Citi noted that while Aristocrat paid a significant premium, this acquisition unlocks opportunities for sustained growth in the RMG sector and completes Aristocrat's RMG build-and-buy strategy.


The transaction is expected to contribute to Aristocrat's profits by the 2025 financial year. Aristocrat's shares rose by 0.3% to A$38.80 following the announcement.


In addition to the acquisition, Aristocrat also announced an increase of A$500 million ($339.2 million) to its existing share buyback program.


Last year, Aristocrat's bid to acquire gambling software company Playtech for 2.1 billion pounds ($2.65 billion) fell through after Playtech's shareholders rejected the offer.


($1 = 1.4743 Australian dollars)

($1 = 0.7923 pounds)

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