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Why Is Neogames (NGMS) Stock Up 118% Today?

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  • Neogames (NGMS) stock is rising on an acquisition deal with Aristocrat Leisure.
  • This has the company being bought for $1.2 billion.
  • That represents a price of $29.50 per share, which is a 104% premium.
NGMS Stock - Why Is Neogames (NGMS) Stock Up 118% Today?

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Neogames (NASDAQ:NGMS) stock is on the rise Monday as investors react to a $1.2 billion acquisition agreement with Aristocrat Leisure.

This deal has Aristocrat Leisure agreeing to acquire Neogames for $29.50 per share. That represents a 104% premium over the 3-month volume-weighted average price for NGMS stock as of May 12, 2023.

The deal has the unanimous support of Neogames’ Board of Directors. It would see the company become a subsidiary of Aristocrat Leisure, which would result in NGMS stock no longer being publicly traded.

Neogames and Aristocrat Leisure will have to complete certain closing conditions before the deal is done. That includes getting approval from NGMS stock shareholders. The company notes that shareholders representing 61% of NGMS stock have signed an agreement to vote in favor of the acquisition offer.

More Details of the NGMS Stock Deal

When the deal closes, Neogames will move its statutory seat, registered office and seat of central administration from Luxembourg to the Cayman Islands. As for when that closing will take place, the two companies expect the deal to reach completion within the next 12 months.

John Taylor, Jr., Chairman of Neogames, said the following about the NGMS stock deal:

“After careful consideration, the Board determined that Aristocrat’s proposal provides shareholders with compelling value, further validating the strength of the business that NeoGames has built. We are pleased to have reached this agreement, which we believe benefits all of NeoGames’ shareholders as well as our various stakeholders.”

NGMS stock is up 117.7% as of Monday morning.

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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


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