Aristocratic Entity Transfers Mobile Game Creator Business for $620 Million in Pursuit of Novel Expansion Procedures
Aristocrat Leisure, a leading global gaming company, has announced the sale of its Plarium Global Ltd special gaming division for $620 million. The transaction, expected to conclude in the first half of 2025, marks a significant step in Aristocrat's long-term growth strategy.
Trevor Croker, Managing Director and CEO of Aristocrat Leisure, highlighted the focus on "regulated gaming content and social slots" in the sale announcement. The proceeds from the sale will be used to finance this new growth strategy.
The strategy prioritizes growth in regulated gaming environments and social slots. Aristocrat aims to combine its traditional casino gaming hardware leadership with expanding interactive digital products designed for social and regulated platforms. This approach seeks to sustain double-digit growth and enhance shareholder returns through operational scaling and capital optimization.
Aristocrat generated an "internal rate of return in the mid-teens" during its ownership of Plarium Global Ltd. However, the company believes that the future lies in leveraging its core gaming franchises and scaling its interactive division. The sale of Plarium Global Ltd is a reflection of this strategic shift.
The new growth strategy is a result of a strategic review that began in May. Aristocrat Leisure bought Plarium Global Ltd in October 2017 for $500 million. The sale price of $620 million indicates a positive return on investment for Aristocrat.
In addition to the immediate $600 million received, Aristocrat is entitled to an additional $200 million payment, contingent upon the company meeting financial targets between 2025 and 2028. The remaining $20 million is due in April 2026.
Aristocrat's focus going forward includes a significant emphasis on the United Arab Emirates (UAE) market. The company has become the first recipient of a vendor license to supply land-based slots, online games, and relevant technology in the UAE. This focus is timely, given the recent news of legal gambling coming to the UAE, with Wynn Resorts securing the only casino license to date.
The purchaser of Plarium Global Ltd is Modern Times Group, a Sweden-based digital entertainment company. The sale signifies a strategic move by Aristocrat to focus on its core strengths and capitalize on growth opportunities in regulated gaming content and social slots.
Trevor Croker, Managing Director and CEO of Aristocrat Leisure, has revealed that the proceeds from the sale of Plarium Global Ltd will be allocated towards financing a new growth strategy that emphasizes regulated gaming environments, social slots, and expanding interactive digital products. In line with this strategy, Aristocrat aims to leverage its traditional casino gaming hardware leadership and capitalize on technology and business investments in gadgets and the technology sector to sustain double-digit growth and enhance shareholder returns.
