Australian gaming giant Aristocrat Leisure Limited has received final regulatory approvals for its proposed acquisition of iLottery and iGaming solutions provider NeoGames.
The Nevada Gaming Commission, among other regulatory bodies, has given the green light for the acquisition, valued at approximately AUD1.5 billion ($962 million).
“Aristocrat Leisure Limited advises that all necessary gaming regulatory preapprovals required for the completion of its proposed acquisition of NeoGames S.A. have been received or waived,” Aristocrat said in a statement.
“In addition, all antitrust and foreign investment regulatory clearances have been received. This marks a further step towards completion of the acquisition, before the final NeoGames shareholder vote.”
The merger will bolster Aristocrat’s position in the online gaming sector, combining NeoGames’ expertise in iLottery solutions with Aristocrat’s gaming technology capabilities. During the Nevada Gaming Commission hearing, Tracey Elkerton, Aristocrat’s chief compliance officer, expressed confidence in the merger’s potential and highlighted the strategic fit between the two companies.
“NeoGames and Aristocrat are continuing to work together to progress the remaining steps required to complete the acquisition. The final shareholder meeting of NeoGames to vote on the acquisition is scheduled to be held on or about April 25, 2024, with completion of the acquisition expected to occur on or about April 25, 2024,” a statement from NeoGames said.
The final shareholder vote is expected to proceed smoothly given the prior overwhelming support. Upon completion of the acquisition, NeoGames will become a privately-held entity, departing from the public market.
The deal encompasses various business segments, including NeoGames’ iLottery platform and complementary services such as Aspire Core, Pariplay, and BtoBet. Elkerton outlined the financing strategy, which involves utilizing existing resources and issuing shares to facilitate the acquisition.
Earlier in April, the Nevada Gaming Control Board recommended approval for Aristocrat’s acquisition of NeoGames, with Elkerton also proposed for licensing. John Taylor, chairman of NeoGames’ Board of Directors, praised Aristocrat’s proposal as a recognition of the company’s value and market position. The merger is expected to lead to NeoGames’ relocation to the Cayman Islands, consolidating operations under Aristocrat’s leadership.
Aristocrat’s strategic move aligns with its vision of global expansion and innovation in online gaming. CEO Trevor Croker highlighted the company’s strong performance in FY23, citing significant revenue growth and international market expansion. Croker emphasized growth potential in the RMG sector and plans for digitalization, including the NeoGames acquisition and investments in online gaming initiatives.