NeoGames shareholders have cast an overwhelming vote in favour of the business’s acquisition by Aristocrat Leisure. Of the 86% of outstanding shares voted, over 99% were in favour of the deal. This shareholder vote is the first of two necessary approvals for the acquisition to proceed.
The Acquisition Details and Conditions
If the deal finalises, NeoGames will move its statutory seat, registered office, and central administration from Luxembourg to the Cayman Islands. An Aristocrat subsidiary will merge with NeoGames, with the latter surviving as a subsidiary of Aristocrat.
The merger agreement also hinges on a shareholder vote, requiring at least 66.7% in favour. Aristocrat, the well known Australian online pokie manufacturer had announced in May its agreement to pay $1.20bn (£921.2m/€1.07bn) for full ownership of NeoGames shares.
NeoGames’ board had unanimously approved the deal already. However, the acquisition is still subject to other closing conditions, including receipt of all necessary gaming, antitrust, and foreign investment regulatory approvals.
Subject to these conditions, Aristocrat and NeoGames aim to complete the deal in H1 of fiscal 2024.
The Potential Benefits of the Merger
Aristocrat CEO and managing director Trevor Croker expressed optimism about the merger’s potential benefits. Croker stated that the combined business could offer comprehensive solutions for igaming, ilottery, and online sports betting operators.
The acquisition aligns with Aristocrat’s aim to accelerate its online gaming plans through mergers and acquisitions. Following its unsuccessful bid to acquire Playtech last year, it acquired Roxor Gaming and established a new digital division, Anaxi.
NeoGames Chairman John E Taylor Jr. affirmed that the acquisition proposal offered “compelling value” to its shareholders. He commended NeoGames’ team for creating a strong platform and differentiated assets in ilottery, igaming, and online sports betting sectors.
Tsachi Maimon, president of NeoGames, spoke about the benefits of the deal. He explained that while NeoGames would become an integral part of Aristocrat’s structure, the agreement would allow both companies to leverage each other’s best assets.
NeoGames has also been active on the acquisition front. It purchased Pariplay, Aspire Core, BtoBet, and an ilottery division as part of its acquisition of Aspire Global. Maimon expressed that these brands would greatly benefit from the Aristocrat deal.