Aristocrat Leisure agrees to buy NeoGames for $29.50 a share in cash

JodiJacobson/E+ via Getty Images

• Aristocrat Leisure Limited agreed to acquire NeoGames SA (NASDAQ:NGMS) for $29.50 a share in all-cash deal for the lottery game technology company.
• The deal, which represents an enterprise value of $1.2 billion, is expected to be completed within 12 months and includes regulator approvals, according to a statement on Sunday. The offer price represents a 130% premium to NeoGames (NGMS) closing price on Friday.
• NeoGames (NGMS) holders, who own approximately 61% of NeoGames’ outstanding shares, have executed a support agreement with Aristocrat to vote in favor of the transaction.
• Stifel is acting as NeoGames’ (NGMS) financial advisor and Latham & Watkins LLP and Herzog Fox & Neeman are acting as legal counsel to NeoGames.

Comments

[Gino Verza]

Surprised this Sunday evening of the news.
Happy to hear about the offer, but disappointed that management/owners are supporting it at $29.50. Clearly, way below my target price -- easily more than twice the offered price.
All in all, not that pleased.

[Bjorn Zonneveld]

@Gino Verza bought Aspire, which was acquired at a lower price than my target. Eventually bought Neogames and it happens again. Maybe I'd buy Aristocrat.

[Gino Verza]

@Bjorn Zonneveld Good thinking. Looked at Aristocrat too, but NGMS hardly moves the needle. However match of competencies looks good. Are you buying Aristocrat?

[Bjorn Zonneveld]

@Gino Verza Thinking about it. In a position right now that I can't do much in terms of transactions. Will have to see what it looks like in August.