Shares of NeoGames (NASDAQ: NGMS) rocket 113% as the internet lottery games operator is set to be acquired by Aristocrat Leisure Limited (ASX: ALL).

Under the current terms, the deal values $NGMS at $29.50 per share – a 104% premium to its average closing price over the past three months. The transaction will be completed within the next year, subject to customary closing conditions and regulatory approvals. Shareholders holding approximately 61% of NeoGames’ outstanding shares have already committed to vote in favor of the deal.
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NeoGames’ board of directors has unanimously approved the takeover, and once finalized, the company will become a wholly-owned subsidiary of Aristocrat. This acquisition benefits both Aristocrat and NeoGames investors, with the takeover price offering a substantial premium to the recent closing price of NeoGames shares. Despite a decline of 10.77% on May 12, the stock has shown a 5.33% increase year-to-date.
Stifel, acting as an advisor to NeoGames, cited the gradual rollout of iLottery in the United States and challenging market conditions as factors influencing the deal. NeoGames primarily operates in Michigan, but also has a presence in New Hampshire, North Carolina, and Virginia while actively pursuing iLottery contracts in several other states.
For Aristocrat, the acquisition of NeoGames provides an opportunity to expand its iGaming and online lottery presence following the collapse of its attempted acquisition of Playtech in 2022. Aristocrat can also leverage Aspire Global, a company acquired by NeoGames in early 2022, which offers technology solutions to online sports betting and casino operators.
The deal highlights the potential growth of the iLottery sector, which has been slower to develop than iGaming and online sports betting. The acquisition is a positive move for other companies with internet lottery exposure, such as International Game Technology (IGT). Analysts suggest that the acquisition diversifies Aristocrat’s business beyond casinos and presents an optimistic outlook for IGT, although iLottery remains a small portion of IGT’s revenue.
In addition, the NeoGames purchase positions Aristocrat to compete more effectively with US-centric rivals like IGT and Light & Wonder.
More background and comments from the CEO
When NeoGames initially went public, it raised $94 million and had an approximately $450 million valuation. Among the primary beneficiaries of the sale were football agent Pini Zahavi and businessman Eli Azur, who each held a 14.5% stake in the company. The founder of NeoGames, Barak Matalon, is the largest shareholder with 23% ownership.
Although NeoGames is incorporated in Luxembourg, its headquarters are located in Tel Aviv, where a significant portion of its workforce of 1,100 employees is also based.
Moti Malul, the CEO of NeoGames, expressed immense pride in the achievements of the entire team, highlighting their leadership in the iLottery, iGaming, and online sports betting sectors. Malul further expressed delight in Aristocrat’s recognition of the value that NeoGames has built and the strategic opportunity to merge their complementary businesses. He firmly believes the transaction will benefit all NeoGames shareholders, customers, and employees.
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