Aristocrat Leisure announced that it has completed its purchase of NeoGames. The deal was signed just over a year ago.
In May 2023, Aristocrat agreed to purchase NeoGames for $1.20bn (PS958.9m/EUR1.12bn). The acquisition was expected to be completed within 12 months.
Aristocrat announced last week that the deal was almost complete, after obtaining all necessary regulatory approvals. NeoGames shareholders voted this week to approve the acquisition, paving the way for the transaction to be completed.
Aristocrat’s Anaxi division will merge with NeoGames to form a global, single business. Aristocrat Interactive will be the name of this combined operation. Aristocrat says that it leverages its global brand.
Aristocrat said that it can now leverage its gaming content and customer relationships, as well as expand capabilities in a wider variety of channels and countries. It says that this will help accelerate its future growth.
Trevor Croker, CEO of Aristocrat said: “We are thrilled to welcome NeoGames into Aristocrat.” The acquisition of NeoGames, and its global real-money online gaming platform will add to Aristocrat’s increasing organic capability and ensure we achieve our strategy through a range of solutions.
The addition of NeoGames into our team will help us to achieve our goal to expand our global reach and capabilities.
NeoGames CEO Malul will lead Aristocrat Interactive
Moti malul will be the CEO for Aristocrat Interactive. He was previously the CEO of NeoGames. He will directly report to Aristocrat’s CEO Croker.
Malul was CEO of NeoGames for five years. He oversaw the expansion of NeoGames’ ilottery and the merger with Aspire Global. Aristocrat Interactive will also be joined by other leaders within the NeoGames company.
Croker stated that “Moti worked closely with our leaders throughout the last 12 months, through the acquisition and integration process.” He will seamlessly transition into his expanded position”
Mitchell Bowen will step down as CEO of Anaxi.
He was a major player in Aristocrat’s Build-and-Buy strategy for entering online RMG scale. It includes the purchase of NeoGames.
Bowen continues to provide Aristocrat with advice until the end of calendar year.
Croker stated, “I would like to thank Mitchell Bowen and recognize his contribution over the past 20 years at Aristocrat.” Mitchell Bowen held several executive positions during his tenure. Mitchell has played a key role in the development of our high-performance culture and focusing on people and customers.
I am thrilled that Mitchell Mitchell will be working in a consulting capacity with Aristocrat, and myself as well as other Aristocrat leadership over the next period.
Aristocrat details revised segment reporting
Aristocrat’s financial reporting will be altered after the completion of the transaction.
The company will report its performance for the first six-month period of 2024’s financial year, which is the 31st March 2024. Performance will be reported in three main segments, Aristocrat Gaming Pixel United, and Aristocrat Interactive.
Aristocrat is scheduled to publish its results on the 16th of May. It will release comparative financial data for the full and half year of 2022 and 2023 before the first quarter results are released. This is to assist in modelling and reconciling prior-year results with the new reporting format.
NeoGames’ final year before the anticipated acquisition saw a 21,1% increase in revenues to $254.4m. NeoGames announced the results in early March. Due to the expected acquisition, they chose not to host an earnings conference call.
Aristocrat’s FY23 results were released in November. The group operates under a different fiscal year to NeoGames. Aristocrat’s ongoing investment plans and diversification strategies helped drive revenue up by 13.0%, to AU$6.30bn.
