NeoGames which is a supplier of iLottery solutions listed on the Nasdaq has made an offer to acquire Aspire Global for a consideration of up to SEK111 per share. The bid is structured with both a cash portion and a share portion with a 50/50 mix (with option to choose 100% cash payment) where the cash portion is SEK111 per share and the share portion is 0.32 shares in NeoGames per Aspire share giving a total value of SEK91 per share for the 50/50 mix offer.
There is also a conditional alternative where shareholders can be fully paid in NeoGames shares although this gives a value of SEK71 per Aspire share based on NeoGames closing price on January 14. Shareholders owning c. 67% of the shares in Aspire has undertaken to accept the conditional alternative which enables other shareholders to choose to be fully paid in cash if they choose so.
The Bid committee of Aspire Global recommends shareholders in Aspire to accept the full cash offer of SEK111 per share.
Redeye views the offer as fair considering our base case for Aspire stands at SEK90 per share although our bull case of SEK128 suggest additional upside in a positive scenario. Assuming the full cash offer of SEK111 per share this values Aspire to c. 11x 2022E EBITDA adjusted for Aspire’s recent divestment of its B2C business.