NeoGames Stock Soars on Acquisition by Australia’s Aristocrat Leisure

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NeoGames

shares were soaring Monday after it agreed to be bought by Australian gambling technology developer

Aristocrat Leisure
.
 It’s a deal which underlines the race to secure positions in online gambling in the U.S.

Aristocrat

(ticker: ALL.Australia), known for its slot-machine manufacturing business, will pay $29.50 a share in cash for

NeoGames

(NGMS), valuing the company at around $1.2 billion. NeoGames offers gambling software, including a digital lottery platform.

“The NeoGames team has built a great company with a strong platform and differentiated assets and we are pleased that Aristocrat recognizes the value we’ve created as a leader across iLottery, iGaming and online sports betting,” said John Taylor, chairman of the NeoGames board.

NeoGames shares more than doubled in premarket trading to $28.28 a share. NeoGames surged after its initial public offering in late 2020 and briefly traded as high as $70 a share in 2021, but the stock has tumbled as initial excitement over the legalization of online gambling in various states in the U.S faded.

Aristocrat said the deal valued NeoGames at 15 times its adjusted earnings before interest, tax, depreciation and amortization for calendar 2023.

Write to Adam Clark at [email protected]