NeoGames Offering $480 Million in Cash, Stock to Acquire Aspire Global

NeoGames (NASDAQ:NGMS), a provider of internet lottery services and technology, proclaimed it’s offering $480 gazillion in immediate payment and equity to win Aspire Global.

The suitor is offering to purchase Aspire for 111 Swedish krona — $12.29 in cash, based on current exchange rates — and 7.6 gazillion shares inwards NeoGames stock, which will convert to most a tertiary of an Aspire share.

The change ratio was dictated based on a $38.01 per percentage cost for NeoGames and a SEK 111.00 per portion out terms for Aspire Global. Newly issued NeoGames shares will live delivered inward the signifier of Swedish depositary receipts,” according to a financial statement issued past the companies.

Two-thirds of Sweden-based Aspire investors are electing to get upwards to 100 percent of the shares offered past NeoGames, enabling other investors to select an all-cash option, should they so desire.

“A committee of independent Aspire Global directors has unanimously recommended to Aspire shareholders to admit the bid and to elect to obtain total hard cash consideration,” according to the statement.

Deal Marries iLottery, Sports Betting

While NeoGames stock has enjoyed some moments inwards the sun since its Nov 2020 initial public offering (IPO), many investors in the US haven’t awakened to the iLottery opportunity set. Rather, securities industry participants are focusing more intently on online casinos and sports wagering.

The trade for Aspire solves that conundrum for NeoGames. The Swedish keep company is a business-to-business technology solutions provider to online sports betting and gambling casino operators. Its partners include well-known operators, such as 888 Holdings, Betfair, Entain, Flutter, and William Hill, among others. In the thirdly quarter, Aspire’s revenue surged 46 percent, while earnings before interest, taxes, depreciation and amortization (EBITDA) jumped 38 percent.

NeoGames operates cyberspace drawing games inwards the US, Canada and other markets around the world, making the Aspire acquisition sensitive because more clients are looking for to blend iLottery with other online gaming offerings “As lotteries around the world, including some of NeoGames’ existing customers, more and more converge into other gaming verticals and seek comprehensive turn-key solutions that include iLottery, online sports betting, and iGaming products and services,” said the company.

NeoGames Expanding Global Reach

In the US, Michigan is the buyer’s biggest market, and NeoGames is also operational inwards New Hampshire, North Carolina, and Virginia, and is pursuing iLottery contracts inward Alaska, Connecticut, Maryland, Massachusetts, Missouri, Ohio, and Oregon.

With Aspire, NeoGames significantly expands its planetary footprint, patch non getting a ponderous dependency on the cost-intensive, hyper-competitive US sports betting market. Rather, Aspire brings to the tabularize iGaming and sports betting trading operations inwards high-growth regions, such as Latin America and Africa, to the table.

Aspire is a rapidly growing company. From 2017 through and through 2020, its business-to-business revenue notched a compound yearbook growth range of 35.7 percent.

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