Poker machine manufacturer and online gaming developer Aristocrat Leisure is planning a massive $1.5 billion purchase of sports betting, online gaming and lottery operator NeoGames.
The company said it planned to purchase 100 percent of the Israeli company which is listed on the US NASDAQ exchange to deliver on its real money gambling (RMG) ambitions.
Sydney based Aristocrat has an agreement with shareholders representing 61 percent of NeoGames stock to sell their shares in a transaction that will be funded from existing cash, showing the strength of Aristocrat’s balance sheet.
NeoGames is made up of four divisions:
The company said the acquisition would accelerate growth and position the company with global scale and capability in the US$81 billion RMG segment.
CEO and Managing Director Trevor Croker said the acquisition would provide a portfolio of end to end solutions for iGaming, iLottery and Online Sports Betting operators globally.
Croker said: “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.
“NeoGames also shares a strong commitment to sustainability, responsible gameplay and people-first culture which is central to everything we do.”
The acquisition will be earnings accretive in its first year.
Croker said: “This proposed acquisition builds on the strength and resilience of our business, expands market opportunities and adds capabilities to unlock our full potential.”
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Picture: Aristocrat Leisure