NeoGames offered to acquire 100% of the shares in Aspire Global in a deal worth SEK4.3 billion ($440.0 million)All conditions for the acquisition have been met, and it is now almost a certaintyThe deal’s acceptance period was extended to 14 June 2022 to give shareholders more time to accept
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NeoGames S.A., a prominent online lottery provider, announced on January 17 2022 that it had made an acquisition offer to Aspire Global plc, a Malta-based business-to-business (B2B) provider of iGaming solutions for the online gaming market. Aspire Global shareholders who accept the deal will receive a combination of cash and newly issued shares in NeoGames.
The Acquisition Process Is Proceeding as Planned despite Short Delays
So far, more than 45 million Aspire Global shares have been tendered in the offer, which adds up to 98.2% of the company’s total shares. This is more than sufficient to pass the 90% threshold required to close the deal. The Gibraltar Gambling Commission and the North Macedonia Competition Authority have also passed their approvals, which means that the acquisition is all but a certainty. Since all conditions for completion have been met, NeoGames declared that their offer is unconditional and the acquisition process will be completed.
The deal was supposed to close on May 25 2022 but has now been extended to 14 June 2022 to provide the remaining Aspire Global shareholders the opportunity to accept the agreement. The deadline will not be subject to any further extensions, and late agreements will not be accepted. A committee of independent Aspire Global directors, formed after the acquisition offer, has recommended that any remaining shareholders acquiesce.
Both Businesses Stand to Benefit from the Merger
Aspire was able to significantly expand its European and North American markets before the deal and received permission to offer its full suite of services in the Netherlands. It also showed an increase in revenue of 31.7% during quarter one, putting it in a strong position. Tsashi Maimon, CEO of Aspire Global, said that the merger is “a strategic fit.”
He commented that the deal was evidence of how much the company’s value had risen since its 2017 Nasdaq listing and assured shareholders that “the objective of the combination is to generate significant long-term value.” Maimon will most likely join NeoGames as president and leader of their newly formed igaming division.
NeoGames also expressed its commitment to the merger. According to Moti Malul, chief executive of NeoGames, “NeoGames will be positioned to significantly increase our addressable market opportunities.” The company also expressed hopes that the merger will allow the combined business to bolster its existing market presence in the US and expand into new areas and regions, such as Latin America and Africa. The combined business will continue to be led by Malul as chief executive, and the current board of directors at NeoGames is also expected to remain unchanged after the deal.