NeoGames Offers $476 million to acquire Aspire Global

Online lottery platform provider NeoGames has commenced a public offer worth $476.0 million to acquire 100% of the shares in Aspire Global. A bid committee consisting of independent directors from Aspire Global was also formed to respond to the offer. It unanimously recommended that shareholders accept it.

The proposal includes cash consideration for 50% of Aspire Global shares, at a price of $12.24 per share, as well as equity consideration for the remaining half, which consists of 7.6 million NeoGames shares.

NeoGames stated that Aspire Global shareholders who collectively own 67.0% Aspire Global's outstanding shares have accepted the offer and will choose to receive 100% of the 7.6 million NeoGames shares.

NeoGames submitted the offer and stated that the combined businesses would create a leading global provider of interactive content, proprietary tech and operations across all elements iLottery and online sports betting as well as iGaming verticals.

The acquisition will provide strategic opportunities for both the combined business to accelerate and diversify further into new markets, including Latin America and Africa, and strengthen its position in existing markets such as the US.

NeoGames claims that the company will also benefit from a strengthened management structure and expertise, as well as a commitment for continued profitable growth.

Moti Malul, CEO of NeoGames, stated that the company had begun a process to identify potential growth areas in areas where it could strengthen its position as a leader in providing digital lottery solutions globally.

As more lotteries worldwide converge into other gaming verticals like online sports betting or iGaming, it is becoming more important to be able to offer a wide variety of products and have experience in their operation.

NeoGames will have a significant increase in market potential by integrating its market-leading platform and scalable positioning within the rapidly growing global iLottery markets with Aspire Global's sports betting platform, BtoBet, its iGaming content, Pariplay, and its turnkey B2B gambling solutions.

If the acquisition goes ahead as planned, Malul would lead the combined company as chief executive. Raviv Adler, currently NeoGames' chief financial officer, would continue to hold this position.

Tsachi Maimon, CEO of Aspire Global, will join NeoGames to lead the newly created iGaming division. The current board of NeoGames directors is expected to stay the same.

Maimon stated that Aspire Global's recent history has been an "amazing journey." He added, "This transaction is the natural next step for our company, as we further enhance our scale and competitive position across all business lines. The objective of the combination is to generate significant long-term value for both sets of shareholders, by synergistically capitalizing on the key strengths of our two platforms and positioning them both for expansion in new and existing markets."

A detailed offer document describing the proposals will be published around April 4. The acceptance period is set to start on May 3. The settlement date is expected to be around May 17.

The acquisition will be completed subject to regulatory approvals, including the receipt of valid tenders of not less than 90% Aspire Global shares and the customary closing conditions.

This offer follows the acquisition by Esports Technologies, a sports betting technology provider, of Aspire Global's B2C company for $75.9 million.

Esports Technologies acquired Aspire's B2C online content portfolio, as well as sportsbook brands, in a deal that was first reached in October 2021. Aspire will manage backend operations for the brands acquired, including Hopa, Karamba and BetTarget.

Aspire Global also purchased a 25% stake of End 2 End bingo supplier for $1.7 million. The company has the option of acquiring the remaining shares within five years.

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