Aristocrat Completes Its $1.2B Acquisition of Neo Group

On May 15, 2023, Aristocrat Leisure Limited, an Australian gambling machine manufacturer, announced its intention to acquire Neo Group in a historic deal. Almost a year later, the latter group, formerly known as NeoGames SA, announced that the transaction had been completed.

The announcement comes a week after Aristocrat successfully navigated through the regulatory labyrinth, receiving final approvals for its proposed merger with NeoGames. For reference, the arrangement was greenlit by the Nevada Gaming Commission and two other regulatory bodies.

According to the confirmation, Aristocrat acquired the technology-driven provider of end-to-end iLottery and iGaming solutions by acquiring all of its outstanding shares for $29.50 per share. The total value of this all-cash transaction is approximately $1.2 billion.

Neo Group’s chief executive officer, Moti Malul, released a statement on the completed transaction.

We are excited to have successfully closed this transaction and joined forces with the Aristocrat team to further drive our success across iLottery, iGaming, and online sports betting.

Moti Malul, CEO, Neo Group

Malul added that his team is convinced that the transaction represents a great outcome for both Neo Group and all of its shareholders, customers and employees. He extended thanks to everyone who has supported the company since its inception. Malul also thanked Neo Group’s talented employees without whom Neo Group would have never become the “great company it is today.”

Aristocrat Is Involved in a Legal Battle

In other news, Aristocrat recently took Light & Wonder to court over an alleged IP violation. The former company pointed out that Light & Wonder’s Dragon Train product is eerily similar to Aristocrat’s Dragon Link series and suggested that the competitor might have copied its work.

Aristocrat further backed its claim with the fact that Emma Charles and Lloyd Sefton, who had worked on Aristocrat’s Dragon Link, have allegedly participated in the production of Dragon Train as well.

Aristocrat said that it is “at least plausible – if not likely – that Ms Charles and/or Lloyd Sefton used Aristocrat’s intellectual property.” The Australian slot powerhouse accused Light & Wonder of riding on its success instead of developing a unique game.

However, Mary LaFrance, UNLV’s Boyd School of Law professor of intellectual property law, recently told the Las Vegas Review-Journal that Aristocrat may be facing a difficult road ahead by attempting to prove a connection between its two former employees and Light & Wonder’s games.

In any case, Light & Wonder was baffled at the accusation, claiming that the lawsuit was “baseless.”