May has been incredibly busy for two well-known industry suppliers, Aristocrat and NeoGames. What began with NeoGames reporting its Q1 financial results, ended up in the announcement of an acquisition of the company less than a week later.
The Innovation Group’s Brian Wyman, SVP of Operations & Data Analytics, commented on the $1.2bn deal in which Aristocrat will acquire 100% of NeoGames.
Wyman began, “The Aristocrat acquisition of NeoGames makes a ton of sense for both parties.”
Before the announcement of its acquisition, NeoGames posted Q1 revenue of $49.5m and had managed to reduce its net loss. Just three days after the acquisition was made public, the supplier also received unanimous recommendation for approval by the Nevada Gaming Control Board.
Aristocrat released its financial figures for the first half of the year later that week, reporting a 12.2% rise in revenue, apparently driven by key performance in both its Americas and online divisions.
And Wyman mentioned NeoGames’ current accomplishments within the online and iGaming markets as factors that would pair well with Aristocrat’s expanding offerings.
“NeoGames is acquired at a substantial premium to market price, and NeoGames’ successful sports, iLottery and online casino businesses are natural extensions for Aristocrat; which gains both NeoGames' existing market access and a seasoned team ready to execute on broader expansion plans.”
Wyman is not only convinced by the lucrative nature of this particular deal, but by the possibilities of similar deals occurring in the future.
“We expect the theme of consolidation and M&A in the iGaming space to continue to pick up speed in the coming quarters.”
