Australian company Aristocrat Leisure announced on Monday that it has agreed to purchase the Israel-based software company NeoGames S.A. for $1 billion. With this deal, Aristocrat Leisure aims to strengthen its position in the online gaming market by incorporating NeoGames’ expertise and technology.
As part of the acquisition, Aristocrat Leisure will offer NeoGames’ shareholders a cash price of $29.50 per share. The deal will allow Aristocrat Leisure to purchase 100% of NeoGames’ outstanding shares.
The company stated that this takeover will allow them to enter in the iLottery market. They believe that by doing so, they can expand their presence in other online gaming areas that involve real money. This move is expected to be beneficial for the company’s growth and profitability.
Trever Crocker, the CEO of Aristocrat said that “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.”
According to Aristocrat, NeoGames’ board of directors has advised its shareholders to vote in favor of the acquisition. Furthermore, shareholders who own 61% of NeoGames shares have already agreed to vote in favor of the purchase. This indicates strong support for the deal among NeoGames’ shareholders.