- The $440.0 million deal concluded smoothly after the acceptance period for the merger was extended to 14 June
- Both companies operate in the iGaming and B2B business and have previously cooperated on projects
- The acquisition will give NeoGames access to increased technical resources and a robust client base
Image Source: LinkedIn, Aspire Global, KPMG
iLottery platform provider NeoGames has completed its acquisition of Aspire Global, which started this January. 99.31% of the shares in Aspire Global were tendered, and any remaining shares will be subject to a compulsory sale around 11 August. The deal is worth SEK4.3billion ($440.0 million) and will result in the complete merger of the two companies.
The acceptance period for the deal had to be extended to 14 June to provide the remaining Aspire Global shareholders the opportunity to accept the agreement. NeoGames offered SEK 111.00 ($12.29) per share, and the independent committee created to facilitate the deal advised investors to agree. To fund the acquisition, NeoGames used approximately $264million in cash and about 7.6 million newly issued shares. The company partially funded the takeover with a $198 million loan from Blackstone Alternative Credit Advisors LP.
Similarities between the Companies Will Contribute to a Smooth Acquisition
Luxembourg-based NeoGames specializes in developing online lottery games for both national and state-regulated lotteries. The company possesses a diverse portfolio and solid experience working for worldwide customers.
Aspire Global is incorporated in Malta and is a leading provider of iGaming solutions for businesses. Aspire’s platform gives clients the necessary tools to operate in both the casino and sports betting sectors. The company is licensed in 31 regulated markets across three continents and has offices in eight countries.
The Merger Is “A Strategic Fit” and a Chance to Increase Market Opportunities
The combined business will continue to be led by Moti Malul as CEO, and the current board of directors at NeoGames will remain unchanged after the deal. Malul stated that the merger would allow both platforms to capitalize on new opportunities. He noted that the combined company was poised to become a “leading global provider in interactive content, proprietary technology” and tap a $74 billion market.
The current CEO of Aspire, Tsachi Maimon, will join NeoGames as President of the company’s new igaming division. Maimon also expressed his excitement regarding the merger and claimed that the move was “the natural next step for our company.” He stated that the two companies would significantly contribute to their mutual growth, and their previous cooperative projects would facilitate a good working environment.
The merger will allow NeoGames to significantly grow its market share, as it will be poised to take advantage of Aspire Global’s European and North American market share. Aspire’s recently acquired a license to operate in the Netherlands will undoubtedly also prove of use. The company will be able to offer online lottery, sports betting, and gaming solutions across an expanded client base.