NeoGames to acquire Aspire Global, a deal worth $480m. Major shareholders have recommended the deal. (Image from Kristin Hardwick at stocksnap.io)
It hasn’t taken too long for the bigger iGaming players to start making their moves in 2022 as they eye further growth. NeoGames, a leading provider of internet lottery in the US and Canada, is looking to diversify its product offering and gain access to new markets via a formal bid to acquire Aspire Global.
On Monday, the firm revealed that it had submitted a formal bid to acquire the full 100% of Aspire Global shares for a purchase price of $480 million. The current share price is stated as $38.01 or SEK 111.
The offer by NeoGames is to acquire all shares via a combination of cash and newly issued NeoGames shares. The company wishes to purchase 50% of the shares in cash and acquire the other 50% by offering equity consideration through the issuing of 7.6 million shares.
The Bid Committee at Aspire Global, formed by an independent group of directors, did not take long to come to the decision to recommend that all shareholders accept this offer. The major shareholders at Aspire Global that hold around 67% of all shares have unanimously agreed to accept the offer. They will each receive 100% newly issued NeoGames shares in return for their Aspire Global shares. This allows the remaining shareholders to choose a cash settlement, newly issued shares, or a mix and match of both.
NeoGames Aims to Solidify its Market Position and Expand Globally
NeoGames is a company that is looking to expand globally. The firm already enjoys enormous success in Michigan, Virginia, North Carolina, and New Hampshire in the US, while it is close to securing online lottery contracts across another seven states.
However, the company wants to diversify the products that it can offer. Clients often want to offer a mix of iGaming verticals alongside lottery, something that this acquisition will allow NeoGames to offer. The company will acquire all the assets of Aspire Global, including its online casino aggregation platform, while it will also gain access to new markets across Europe, Africa, and Latin America.
For Aspire Global, this represents a fantastic opportunity to get a foot in the door of the US. Combined, the two leading iGaming giants can offer a complete online gaming solution across major markets on a global scale.
The Aspire Global currently powers some big name online casinos including Karamba, Mr Play, Funfair Casino, Kaiser Slots, Spin Rio, and King Casino. By gaining access to markets in the UK, the firm can continue its growth, although under the new ownership of NeoGames.
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