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iGaming and iLottery solutions company NeoGames and Aristocrat Leisure Limited are still collaborating to finalize the necessary steps for an acquisition, slated to finish by April 25.
Back in May 2023, Aristocrat revealed their plans to acquire NeoGames for $965 million. The board of directors of NeoGames decided in favor of the buyout with a unanimous vote.
Following the completion of the transaction, Aristocrat will acquire full ownership of the online lottery company. Hence, NeoGames is set to transfer its statutory seat, registered office, and seat of central administration from Luxembourg to the Cayman Islands.
“We believe this transaction will be transformational to our business and lay the foundation to fulfill our ambitions to be a leader in online gaming. A lot has to happen between now and close. The first step is that NeoGames will redomicile to the Cayman Islands, and we’re targeting April 24 for that to occur,” Tracey Elkerton, Aristocrat’s chief compliance officer, told the Nevada Gaming Commission, according to media reports.
According to Elkerton, the company’s present cash reserves will finance the acquisition. Using internal dividends, obtaining loans, and issuing shares are the tactics for paying the remaining sums needed to close the purchase. Elkerton continued:
“NeoGames, currently traded on NASDAQ, will cease trading, and finally, NeoGames will hold a shareholder meeting as a Cayman company, and shareholders will be asked to vote again to approve the merger of the two entities. We do not anticipate any obstacles to completing these steps. We anticipate closing will occur immediately after the shareholders vote on the 25th.”
Aristocrat’s acquisition of NeoGames: a strategic move into the online casino market
Elkerton stated during the Commission hearing that Aristocrat’s latest purchase is a deliberate move toward developing a powerful position in the US online casino business.
Hence, after failing in its 2022 bid to purchase Playtech (LSE: PTEC), Aristocrat now has a new chance to increase its footprint in the iGaming and US online lottery industries. This may make it easier for the company to make use of Aspire Global, a business that NeoGames purchased about two years ago.
“I realized how much I didn’t know about online gaming until we started to look at this acquisition,” Elkerton said. “We did anticipate that these would be new businesses and new products in verticals we don’t operate in today. As a result, 15 months ago, we hired a compliance manager to lead our efforts for our online wagering business.”
NeoGames acquisition deal guns for more profitability
This move not only gives Aristocrat (ASX: ALL) a wider global reach and greater opportunities, but it also unlocks significant revenue by combining its content and partnerships with NeoGames’ advanced platform and technology.
Recent NeoGames partnerships inked include:
- NeoGames launched its portfolio of instant online games with the Georgia Lottery
- NeoGames subsidiary Pariplay signed a deal with Tipico to offer online games in New Jersey
- In PA, BetRivers and PlaySugarHouse introduced online games by Pariplay
Furthermore, this purchase brings on board a skilled management team ready to lend their knowledge to advancing Aristocrat’s development and scalability in this competitive market.
Who is Aristocrat Leisure?
Aristocrat Leisure Limited is an Australian company known for its gaming machines. The manufacturer has established an operating and research headquarters in North Ryde, a Sydney suburb, and beyond its Australian base, it has marketing and development offices in:
- South Africa
- Russia
- United States
With its unique products, especially its gaming settings that include progressive jackpots dispersed over several machines, Aristocrat has been able to create a solid reputation. Hence, consider their highly popular Lightning Link series.
