NeoGames will receive a €190 million term loan from Blackstone’s credit advisory to fund the cash side of the transaction
NeoGames, a leading B2B iGaming technology solutions provider to online sports betting and casino operators, announced that it has begun a public offer to the shareholders of Aspire Global plc, a technology-driven provider of end-to-end iLottery solutions, to acquire 100% of the outstanding shares of Aspire Global.
The bid from NeoGames is for a total purchase price of around €410 million, equivalent to SEK 4.3 billion. Aspire Global Plc’s board of directors ‘unanimously recommended’ a SEK 111 (€11) per share bid to shareholders on behalf of NeoGames SA.
The public tender offer values Aspire Global at SEK 4.3 billion (€410 million), a 41% premium over the company’s closing trading price on the Nordic Nasdaq Exchange on January 17th of SEK 78.50 (€7.60) per share.
NeoGames wants to buy 50 percent of Aspires’ stock for SEK 111 a share, according to the conditions of the deal. The remaining stake in Aspire will be purchased through the issuance of 7.6 million new shares by an expanded NeoGames.
NeoGames will receive a €190 million term loan from Blackstone’s credit advisory to fund the cash side of the transaction. The cash-and-stock deal will be recommended to Aspire’s majority shareholders, who own a combined 67 percent of the company. Smaller investors, meanwhile, will have irrevocable rights to sell their shares for a fixed cash offer of SEK 111 per share. Aspire stated that the NeoGames purchase will represent a 16.8 multiple on EBITDA results for investors who choose to be paid in cash, which compares favorably to M&A deal multiples in the iGaming sector.
Speaking to SiGMA News, CEO of Aspire Global, Tsachi Maimon commented, saying:
“The potential merger with NeoGames epitomises the supreme progress that Aspire Global has made over the previous 12 months. After successfully integrating Btobet and Pariplay within our overall offering, along with the divestment of our B2C division and further investment in bingo, Aspire Global has grown to become a major B2B supplier within the global industry.
“In partnership with NeoGames, we are ready to embark on a new era together. The synergies between both organisations will result in a powerhouse that will serve the iGaming and iLottery industries with a comprehensive one-stop solution, encompassing world-class platform technology, engaging content and innovative managed services.
“The future is very exciting for Aspire Global. We remain completely focused on our international expansion strategy, particularly across the US with endless opportunities ahead to increase our presence, as well as in Europe, Latin America and Africa, where we continue to drive success for our new and existing partners.”
Chief Executive of NeoGames Moti Malul stated that the company is 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.”
NeoGames also stated that by integrating their market-leading platform and scalable position within the rapidly expanding global iLottery market, with Aspire Global’s proprietary sports betting platform, BtoBet; its iGaming content and aggregation platform, Pariplay; and its proprietary content and turn-key B2B Gaming solutions, “NeoGames will be positioned to significantly increase our addressable market opportunities.”
The NeoGames tender is conditional on regulatory approvals and the valid receipt of at least 90% of Aspire Global’s shares. The usual closing conditions should be accomplished in the first half of 2022.
VIP Networking Dinner – SiGMA Toronto:
SiGMA Group has announced plans to hold a VIP dinner on the 9th of February to officially mark the launch of the inaugural SiGMA Americas summit in Toronto. With no expense spared, the intimate and exclusive dinner will gather some of the biggest players in Canada’s gaming and tech ecosystem for an evening of premier networking. This long-standing tradition of iGathering events offers the ideal backdrop for striking meaningful connections within the industry and ensuring relationships flourish.