By Stuart Condie
SYDNEY–Australian gaming technology developer Aristocrat Leisure agreed to pay $1.2 billion for Nasdaq-listed NeoGames.
Aristocrat on Monday said that it had offered $29.50 a share in cash and will fund the transaction with its existing cash reserves. NeoGames shares last traded at $12.84, having dropped 11% on Friday following its first-quarter results.
ASX-listed Aristocrat said the deal valued NeoGames, which offers products including a digital lottery platform, at 15 times its adjusted earnings before interest, tax, depreciation and amortization for the 2023 calendar year.
It expects to complete the acquisition in fiscal 2024 and for it to be earnings-per-share accretive from fiscal 2025, once amortization of acquired intangibles is stripped out.
NeoGames’s board has recommended the proposal, Aristocrat said.
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This story originally appeared on Marketwatch