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Aristocrat’s $1.8bn NeoGames Deal Set to Fulfill Online Gaming ‘Build and Buy’ Strategy



Aristocrat's $1.8bn NeoGames Deal Set to Fulfill Online Gaming 'Build and Buy' Strategy

Aristocrat Leisure has announced an all-cash deal valued at AUD$1.8bn ($1.2bn) to buy online gaming provider NeoGames. The acquisition will allow Aristocrat to further its ‘Build and Buy’ strategy. The Sydney-based company plans to pay $29.5 per share for owning NeoGames.

The acquisition will help Aristocrat expand into the real-money gaming (RMG) sector and boost its global presence. This segment of the gaming industry encompasses lotteries, real money online casinos, and sports betting.

Keep reading to discover more about this deal and what it means for Aristocrat and the industry. The experts from AussieBestCasinos, who are renowned for their comprehensive gambling industry and real money casino analyses, have researched this deal and provide valuable insights and conclusions.

Background on Aristocrat

Aristocrat Leisure is a dominant name in the real money pokies industry. The company has operated for over sixty years and is based in Sydney, Australia.

It is known for innovative gaming technology that creates an immersive player experience. Below, we will provide more info about the company and its plans.

  • Aristocrat as a leading pokies titan

The company has built a reputation as a leading pokies titan. It has operated since 1953 and has become a household name in the casino industry. Aristocrat has a significant global presence with operations in over 90 countries.

Its pokies are popular in land-based casinos. But the company has been making a concerted effort to expand its presence.

Aristocrat’s focus on innovation has resulted in the development of cutting-edge technology. Its most popular pokies titles include Queen of the Nile, Buffalo, and 5 Dragons.

It has won many awards for its products, and the company continues pushing the industry’s boundaries. Aristocrat is set to grow its portfolio and cement its position as a leading player.

Category Description
Company Name Aristocrat Leisure Limited
Founded 1953
Headquarters North Ryde, Sydney, Australia
Industry Gaming
Products Gaming machines, Online games, Video terminal systems, Electronic table games, Digital social games
Notable Games Queen of the Nile, Where’s The Gold, 50 Lions, Miss Kitty, Dolphin Treasure, More Chilli, Big Red, Buffalo, Lucky 88
Official Website
  • Understanding Aristocrat’s ‘Build and Buy’ Strategy

Aristocrat has adopted a ‘Build and Buy’ strategy to expand its product offerings. The company focuses on in-house innovation to develop new technologies and products.

Also, it seeks potential acquisitions that can complement its core business. The strategy helps the company stay ahead of competitors, attract new customers and increase market share.

The firm has made several acquisitions in recent years as part of this strategy. In 2018, the company acquired the social casino games company Plarium. In 2020, it acquired Big Fish Games. These acquisitions allowed it access to both social gaming and real money casino sectors.

Background on NeoGames

NeoGames is a prominent online provider specializing in real-money gaming. The company was founded in 2005 and listed on NASDAQ. It has headquarters in Luxembourg, Israel, Malta, and the UK. NeoGames offers a huge platform for iGaming, iLottery, and online sports betting.

  • NeoGames as a prominent online gaming provider

This company has built its reputation as a significant player in the gaming industry. It operates in over 50 regulated markets and employs approximately 1,100 people.

They provide end-to-end solutions for online RMG operators worldwide. These include lotto, sports betting, and, of course, online casino gaming. The platform has won industry acclaim as an innovative and easy-to-use solution.

  • Overview of NeoGames’ offerings and capabilities

NeoGames’ iGaming content is wide-ranging and designed to cater to online gaming operators from all over the world. One of the company’s key offerings is its powerful and adaptable platform. It provides end-to-end solutions, from player management to payment processing and everything between.

With a focus on responsible gambling, it considers both customer needs and operator requirements. To make its platform accessible to a broad range of customers, the company provides its products across various devices. Mobile users access its games and products on phones, tablets, and other devices.

The platform also offers a range of third-party products. These include virtual sports betting and games from other top-rated developers. NeoGames has developed an intuitive API that makes integration with other solutions simple.

The deal between the two companies

Aristocrat has agreed to buy NeoGames for USD $1.2bn (AUD $1.8bn) or USD $14.45 a share. The acquisition will help the latter to expand its online gaming portfolio. The deal offers potential benefits and synergies. NeoGames complements Aristocrat Gaming’s current assets, aligning well with its vision for growth.

The transaction has received clearance from Neogames’ board of directors. The shareholders owning 61% stake have voted in favor. The CEO, Moti Malul, believes this is an excellent outcome for all stakeholders in both companies.

The potential benefits and synergies arising are enormous. Aristocrat gains access to content and technology solutions, including its real-money gaming platform. The companies will provide online lottery solutions and sports products to players worldwide.

One of the significant benefits is that the firm can scale its operations globally. The firm has a vast customer base in over 90 countries. But NeoGames strengthens its position and will offer new opportunities to enter new markets. It is a well-thought and strategic move that supports the ‘Build and Buy’ strategy.

Implications for Aristocrat and the Online Gaming Industry

While the deal is a significant move for the company, it also has implications for the broader online industry. Aristocrat increases its market share and influence. The deal enables it to expand its portfolio and strengthens its position in new markets.

As for the online industry, it shows that companies are looking to expand and merge for increased market share. It indicates a shift in strategy towards consolidation of the industry. So, larger companies look to buy smaller ones to create a more comprehensive offering for players.

But it’s also a sign that there is significant potential for further growth and innovation in the sector. With new technologies developing, online companies expand their offerings to reach a wider audience.

SEE ALSO: How To Increase Dedicated Video RAM (VRAM) In Windows & MacOS

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