Aristocrats Set To Close On April 26 With Neo Games Acquisition

Australia-based slot machine maker and gaming content provider Ebricat Lessure Ltd said the acquisition of online real money gaming (RMG) provider NeoGames SA is "expected to take place around April 26, 2024.

"All necessary pre-approval of gaming regulations has been received or waived," the company said in a filing with the Australian Stock Exchange on Friday, which is required to complete the proposed acquisition of Neo Games.

"We have also received all anti-trust and foreign investment regulatory permits," it said.

"This acquisition is a step further toward completing the acquisition before the final Neo Games shareholder vote," the company added.

Aristocrat announced the deal in May last year, saying it had agreed to pay 1.88 billion Australian dollars (about $1.15 billion, now) to Neo Games. At the time, the company said the deal would "implement the Aristocrat's online RMG strategy and accelerate growth in the sector."

Neo Games is a technology and services provider that provides proprietary technology platforms and a range of value-added services to the online RMG industry, offering proprietary technology platforms and a range of value-added services in iLottery, iGaming and online sports betting.

The Neo Games Group consists of four complementary online RMG units, including Parlayplay Ltd.

In July, shareholders of Neo Games gave a nod to the first of two shareholder approvals needed to influence the takeover offer.

"Aristocrat and NeoGames continue to work together to proceed with the rest of the steps needed to complete the acquisition," the Australian company said in a release on Friday.

It added: "The final shareholders' meeting of Neo Games to vote on the acquisition is expected to take place on or around April 26, 2024, with the completion of the acquisition expected to take place on or around April 26, 2024."

The acquisition requires the consent of two-thirds of Neo Games shareholders at the 2nd general meeting of shareholders.

Aristocrats have been working to expand their online RMG division since launching the RMG division called Anaxi in 2022. In February last year, it completed the acquisition of Roxor Gaming Ltd, a London-based online RMG supplier.

Broker JP Morgan Securities said in a note on Thursday that the acquisition of Neo Games would be a "short-term" catalyst for aristocrats. 홀짝게임

"[After the completion of the transaction] aristocrats will be able to achieve a net cash balance sheet in fiscal 2025 unless they increase their existing share buybacks to the maximum," analysts Don Carducci and Michael James said.

They added: "Aristokrat's strong generation of free cash flow means its balance sheet remains in excellent shape after the completion of the acquisition of Neo Games and the current share buyback."