Acquisition Deal Overview
NeoGames, a prominent player in the gaming software industry, announced its acquisition of Aspire Global on January 17, 2022. The acquisition was valued at SEK 111.00 ($12.29) per share, involving a blend of cash and newly issued NeoGames shares, totaling approximately $264 million in cash alongside 7.6 million shares. This strategic move was backed by debt financing of €187.7 million ($198 million) from Blackstone Alternative Credit Advisors.
Acquisition Timeline and Key Dates
The acceptance period for the acquisition was extended from May 25, 2022, to June 14, 2022, at 5:00 PM (CEST). Shares tendered during this extended period were slated for settlement around June 30, with any outstanding shares subjected to a subsequent squeeze-out, expected to conclude by August 11.
Leadership and Organizational Changes
Following the acquisition, Moti Malul, the CEO of NeoGames, will continue to lead the combined entity, working alongside Aspire Global’s CFO Raviv Adler and President Tsachi Maimon. The existing board of directors of NeoGames will remain unchanged, ensuring continuity and strategic alignment during the integration process.
Strategic Rationale and Synergies
Malul expressed enthusiasm about the transaction, highlighting the strategic benefits and potential opportunities to leverage the synergies between NeoGames and Aspire Global. Maimon echoed these sentiments, emphasizing the merger as a transformative step to enhance competitiveness and scale across all business lines.
Financial Structure and Funding
The acquisition was financed through a well-structured blend of cash and debt financing. The cash component of the deal was partially funded by a term loan of €187.7 million ($198 million) from Blackstone Alternative Credit Advisors, demonstrating robust financial backing and confidence in the strategic direction of the combined entity.
Market Impact and Delisting Process
In anticipation of the acquisition’s finalization, Aspire Global’s board of directors applied for the delisting of the company’s shares from the Nasdaq First North Premier on June 15, 2022. This proactive step aligns with the integration strategy and streamlines the operational and regulatory processes post-acquisition.
The acquisition of Aspire Global by NeoGames represents a pivotal moment in the gaming and entertainment sector. The strategic rationale, coupled with strong financial backing and leadership continuity, positions the combined entity for enhanced growth, competitiveness, and value creation. The successful execution of this acquisition underscores NeoGames’ commitment to strategic expansion and market leadership in the dynamic gaming industry landscape.