Australian gaming giant Aristocrat Leisure Limited (ASX: ALL) has agreed to acquire 100% of NeoGames S.A. for AU$1.8 billion, in line with its online real money gaming (RMG) strategy and expected to accelerate growth. Around 61% of NeoGames' outstanding shareholders have agreed to approve the acquisition, which values NeoGames' fully diluted equity at approximately AU$1.5 billion, a premium of about 104% to the 3-month volume-weighted average price of its shares for the period ending on May 12, 2023.
The acquisition is predicted to increase earnings per share (EPS) in the first year of Aristocrat's ownership. The purchase of NeoGames will also enable Aristocrat to enter the iLottery market, which is a highly regulated and complementary adjacency and can facilitate further penetration across other online RMG verticals. In addition to the acquisition, Aristocrat has increased its on-market share buy-back programme by up to AU$ 500 million.
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