NeoGames has submitted a public tender offer to acquire Aspire Global for $480 million in cash and newly issued shares. (Image from Chris Liverani at unplash.com )
2021 was a year full of iGaming acquisitions, but aside from the continued rumbling on of the Playtech saga, no such moves had yet occurred in 2022. That is until now, as NeoGames, a leading provider of online lotteries, has made a formal bid to acquire the online casino and aggregation brand, Aspire Global, for $480 million.
Aspire Global announced the formal offer via a statement released yesterday. It revealed that NeoGames made an offer on Monday the 17th of January of SEK 111 ($12.22) per share, giving the company a value of between $500 and $600 million. That public tender offer was made to all shareholders of Aspire Global, giving them the option to tender their shares of the company to NeoGames. Shareholders can consider a Mix and Match process, which is a mix of cash and newly issued shares in NeoGames. They can tender their shares for an all-cash option, tender some for cash and others for NeoGames shares, or swap them entirely for the newly issued shares.
Aspire Global’s main shareholders hold around two-thirds of the company’s shares and votes and are now electing to receive up to 100% of the shares on offer from NeoGames as part of its acquisition offer. The statement reveals that an independent committee of directors has unanimously endorsed the offer from NeoGames and recommends that all Aspire shareholders accept the offer to receive a full cash remuneration.
Aspire Global powers dozens of online casinos via its AspireCore aggregation platform including Mr Play, Karamba Casino, CasiPlay, Wixstars, and more recently Ireland’s Funfair Casino.
How this Acquisition Benefits Both Parties
NeoGames specialises in B2B iLottery services in North America and various other regions. However, the firm knows that many clients want to offer a product that is a combination of online lottery, sports betting, and online casino games. Purchasing Aspire Global allows NeoGames to offer a more diverse range of services going forward.
This deal will allow NeoGames to not only gain the proprietary products of Aspire Global, but will also give the firm access to regulated markets across Europe, LATAM, and Africa. Where the deal makes sense for Aspire is the potential to speed up its plans to enter the US market.
In short, the merging of two leading companies will instantly create a leading global supplier across many verticals in the iGaming industry.
As the major shareholders of Aspire Global have recommended this deal to go ahead, we expect it to complete fairly quickly. A strategical move by both parties, it will be interesting to follow the growth of NeoGames over the next few years.
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