Aristocrat Leisure to Begin Expanding into Lucrative Online Gaming Market

June 5, 2023
16,768 Views
Nenad Nikolic

Aristocrat Leisure, an Australia-based major slot machine manufacturer, is set to acquire NeoGames, an online gaming solutions provider, for a cash amount of approximately US$1.2 billion. Following the announcement, NeoGames' shares surged by 120% in pre-market trading on the US market.

Under the proposed deal, Aristocrat plans to purchase all of NeoGames' shares at a price of US$29.50 per share, representing a significant premium of around 130% compared to NeoGames' closing price on the previous Friday. The acquisition is expected to be completed within a year, pending the required regulatory approvals.

The primary objective behind this acquisition is for Aristocrat to gain entry into the highly profitable iLottery market and expand its presence in other online real money gaming (RMG) sectors. Aristocrat has been actively pursuing RMG growth and had previously made an unsuccessful attempt to acquire Playtech, a gambling software and games developer, for a value of US$3.7 billion last year.

NeoGames specializes in providing technology solutions and content for the online RMG industry. The board of directors of NeoGames has recommended that shareholders accept Aristocrat's offer. Aristocrat anticipates this purchase will contribute positively to its profit starting from the 2025 financial year.

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