Aristocrat Leisure Limited, a preeminent entity in entertainment and content creation, announced the completion of its $1.2 billion purchase of the renowned iGaming and iLottery provider Neo Group Ltd, previously known as NeoGames SA. The acquisition, at $29.50 per share, received strong approval from NeoGames’ shareholders during a recent meeting to finalize the transaction.
Initiated in May 2023, Aristocrat Leisure expressed its intent to acquire NeoGames, a key provider of technology and platforms for online real money gaming (RMG) operations, also bringing significant value in online sports betting (OSB) technology, iGaming, and iLottery services. At the announcement, NeoGames’ shares were significantly below Aristocrat’s offering price.
Integration with Anaxi
The acquisition involves merging NeoGames with Anaxi, an Aristocrat subsidiary, and relocating to the Cayman Islands. Under the terms, NeoGames shares will be canceled, removing them from public trading, and shareholders will receive fair cash compensation.
The NeoGames Board of Directors endorsed the acquisition, supported by the majority of shareholders, who own approximately 61% of the total shares. The transaction, which began in May 2023, was expected to conclude within a year, having secured all necessary regulatory approvals as per the announcement.
Introduction of Aristocrat Interactive
Post-acquisition, NeoGames’ expertise will be leveraged under the new division, Aristocrat Interactive, aiming to enhance Aristocrat’s global gaming content delivery. Motil Malul, NeoGames’ CEO, will lead this new division, reporting directly to Trevor Croker, CEO of Aristocrat Leisure.
Leadership and Personnel Changes
With a robust 15-year leadership track record, Motil Malul will bring his extensive iGaming and iLottery experience to Aristocrat. Concurrently, Mitchel Bowen, Anaxi’s CEO, will transition to a consulting role through the end of 2024, facilitating a smooth integration.
Aristocrat Leisure’s CEO, Trevor Croker, expressed enthusiasm about the acquisition, stating, “The acquisition enhances our capabilities and supports our strategy to offer comprehensive solutions across iGaming, iLottery, and OSB sectors globally. It also propels our vision to dominate the regulated online RMG platform globally.”
Aristocrat will integrate approximately 1,200 NeoGames employees into its operations, a move that Croker believes will ensure seamless integration thanks to the collective expertise of NeoGames’ executives and teams. He also expressed gratitude to Mitchel Bowen for his 20-year contribution to Aristocrat.
Revised Reporting Structure
Following the acquisition, Aristocrat will modify its segment reporting, detailing its performance under Aristocrat Leisure, Pixel United, and the newly established Aristocrat Interactive, beginning with the first half of the 2024 fiscal year.
The transaction follows a strong performance by NeoGames, which reported a 21.1% increase in revenue in its last full year before the acquisition, whereas Aristocrat recorded a 13.0% revenue growth in FY23, as part of its ongoing strategic investments and diversification efforts.
