From Neophyte To Aristocrat, Ozzie Heavy Metal Giants End iGaming Drought With US$1.2bn Cash Flood

If at first you don’t succeed then try, and try again.

Following their aborted US$3.37bn (£2.7bn) takeover bid for Playtech early last year, Australian heavy-metal gambling giants Aristocrat Leisure, the second largest slot machine manufacturer in the world, has put the adage to good use by rolling up their mega move into iGaming with a US$1.2 billion (£959m) pure cash buy-up of Israel’s NeoGames.

Sydney-based, ASX-listed Aristocrat, active in over 200 jurisdictions, has literally doubled down on its avowed strategy of becoming a genuine world-straddling gambling Omnichannel – beyond the slots and casino games.

They are paying US$29.50 a share–over 100 percent of average NeoGames share value in the last quarter–to bring Neo’s BtoBet, AspireCore and Pariplay brands under their corporate umbrella – some 15-times greater than the company’s projected 2023 EBITDA.

The deal has been recommended by the NeoGames board and is expected to close within 12 months. The company has also agreed to transfer its HQ from Luxembourg to the Cayman Islands.

“This proposed acquisition builds on the strength and resilience of our business, expands market opportunities and adds capabilities to unlock our full potential,” affirmed Aristocrat CEO Trevor Croker.

“We remain focused on executing our proven growth strategy and creating long-term value for Aristocrat shareholders.

“Through the acquisition of NeoGames and its industry-leading global online RMG platform, this transaction will deliver on our strategy by providing a portfolio of end-to-end solutions for iGaming, iLottery and online sports betting operators globally.

“We see great opportunities in the combination of our complementary businesses, with clear revenue and growth potential that comes with a complete and seamless online RMG solution.”

Commented NeoGames Chair John E. Taylor, Jr: “[We have] built a great company with a strong platform and differentiated assets and we are pleased that Aristocrat recognises the value we’ve created as [an online] leader.

“After careful consideration, the board determined that Aristocrat’s proposal provides shareholders with compelling value, further validating the strength of the business that NeoGames has built.”

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