Aspire Global will merge under the roof of NeoGames if shareholders agree with the board and accept the leader’s unanimous recommendation to accept NeoGames’ €410m takeover offer.
The offer to shareholders is SEK 111 (€11) per share with the public tender valuing Aspire at SEK 4.3 billion (€410m) – a markup of more than 40% over the stock’s closing price on Monday. Aspire Global stock closed out the day on January 17 at SEK 78.50 (€7.60) per share on the Nordic Nasdaq Exchange.
NeoGames would access $215 million via a loan from private equity firm Blackstone which would procure 505 of the shares from shareholders at the offer price along with issuing 7.6 million new shares to pick up the remaining equity.
Cash and Stock for Larger Investors
Small investors in Aspire Global would be offered the irrevocable right to cash in their shares at the SEK 111 per share price. Larger investors, who control 67% of the company would be offered the hybrid deal of stocks and cash.
Aspire Global has been transitioning from B2C and B2B to a strictly business-oriented company having agreed to pare down business to customer elements late last year. Combining corporate synergies with NeoGames is a highly strategic move that changes the company’s makeup and trajectory irrevocably.
Aspire brings systems and software into the entity that will allow NeoGames to expand its B2C offering as a one stop shop for lottery operators.
A new iGaming unit would be created at NeoGames with Aspire’s CEO, Tsachi Maimon as president. NeoGames Chief Executive Moti Malul and Chief Financial Officer Raviv Adler would lead the new combined company.
Strategy-driven Acquisition
Malul had this to say about the M&A action: “We are thrilled to announce this highly strategic transaction. Our objective in combining our two companies is to create a leading global provider in interactive content, proprietary technology, and operations across all elements of iLottery, online sports betting, and iGaming verticals.”
Pending regulatory approval as well as reaching a threshold of 90% of the existing share acquisition, the deal is expected to close in 2022.
Tsachi Maimon commented: “Aspire Global is a high quality, leading supplier with a one-stop shop in the regulated gaming industry. Following the acquisition of Btobet, Pariplay, the recent investment in bingo, and the divestment of the B2C division, and now this potential merger with NeoGames, we will create a leading global supplier for the entirety of the igaming and ilottery space overnight.
“I strongly believe that the two companies are well-matched with a solid cultural connection forged over many years of working together which will facilitate meaningful revenue synergies.”
NeoGames also recently branched out into the Turkish lottery market in a tie-up with Sisal.
Source: Malta – Aspire accepts NeoGames acquisition offer, G3 Newswire,January 18, 2022