Aristocrat Wraps Up NeoGames Acquisition, Deal Valued At Approximately $1.2 Billion

Erik Gibbs

Hand holding wood cube block with M and A text

Aristocrat Leisure, an Australian gaming powerhouse, has marked a significant expansion of its digital footprint by completing the strategic acquisition of iLottery and iGaming tech provider NeoGames. NeoGames confirmed the acquisition in a press release on Thursday, stating that it “represents a great outcome for all of Neo’s shareholders, customers, and employees.”

The deal, valued at approximately $1.2 billion, was finalized after nearly a year of negotiations. Both companies have stated that this equates to a premium on NeoGames’ share price of around 104%.

The acquisition of NeoGames and its leading global online RMG platform adds to our increasing organic capabilities and will ensure that we deliver on our strategy by providing a portfolio of end- to-end solutions for iGaming, iLottery, and OSB operators globally.

Aristocrat CEO Trevor Croker

With this move, Aristocrat is poised to leverage NeoGames’ technological prowess and robust platform, which the company has said aligns perfectly with its own content creation expertise. This synergy is expected to drive Aristocrat’s growth trajectory, enabling it to tap into new markets and customer segments.

Aristocrat announced last week that it had received approvals from both the Nevada Gaming Control Board and the Nevada Gaming Commission to move forward with the acquisition. That essentially only left a NeoGames shareholder vote standing in the way, and shareholders overwhelmingly backed the arrangement.

A big step forward for Aristocrat

Aristocrat’s Anaxi subsidiary, its Real Money Gaming (RMG) arm, will lead the post-merger operations through a new unit, Aristocrat Interactive. Moti Malul, previously the CEO of NeoGames, will assume the role of CEO for the new venture. Reporting directly to Aristocrat CEO Trevor Croker, Malul will spearhead the company’s strategic direction and operations.

A gambler in front of an online casino slot

Anaxi’s current CEO, Mitchell Bowen, will immediately step down to make way for Malul. However, he’s going to continue to be a part of the company, serving as an adviser until the end of the year.

For Aristocrat, the integration of NeoGames’ assets represents a significant leap forward in its digital strategy. The acquisition allows Aristocrat to expand its digital offerings, particularly in the realm of iLottery—a sector where NeoGames has established a commanding presence.

This strategic move is anticipated to generate substantial revenue opportunities by combining Aristocrat’s renowned content and regulatory relationships with NeoGames’ cutting-edge platform and technology. It will also greatly widen Aristocrat’s online scope, allowing it to penetrate quickly and deeply into the RMG segment.

Strong revenue growth ahead

Aristocrat hasn’t yet released its financial data for the first quarter and has said that the merger will lead to some changes in the reporting structure. It’s coming off a banner year, though, having reported a normalized group profit result of around $1.3 billion for 2023. That was a significant increase in reported terms compared to the previous year.

This growth was attributed to the company’s scale, the robustness of its market, and the high quality of its offerings in both the gaming machine and digital content sectors. The company says its commitment to innovation and customer engagement and its strategic investments in technology and content creation have been pivotal in driving its financial success.

Investors and stakeholders can look forward to the interim results announcement to gain insights into the company’s latest financial health and projections for the remainder of the fiscal year. That update will likely arrive mid-May.