Aristocrat Leisure sells Plarium Global to MTG for $620 million

Anchal Verma November 13, 2024

SiGMA news

Aristocrat Leisure has announced the divestment of its mobile gaming subsidiary, Plarium Global, to Modern Times Group (MTG) for a fixed consideration of $620 million, along with a potential $200 million in additional payments based on financial performance targets. This sale, which Aristocrat undertook following a review initiated in May 2024, signals a major shift in the company’s focus towards regulated land-based gaming, real money gaming, and social casino markets.

Deal structure and payment timeline

MTG is set to pay $600 million upon closing of the transaction, with an additional $20 million deferred until 2026. The contingent consideration of up to $200 million is conditional upon Plarium meeting specified financial targets between 2025 and 2028. This structured deal underscores Aristocrat’s shift towards optimising its portfolio by refining its gaming assets and channelling resources into core growth areas.

The transaction is expected to close following regulatory approvals and customary closing conditions. With this sale, Aristocrat anticipates a gain on sale, compared to Plarium’s book value, which was approximately $450 million as of September 2024.

Plarium’s impact on Aristocrat

Aristocrat acquired Plarium in 2017, leveraging the digital gaming capabilities to diversify its portfolio and boost its digital transformation, especially during the pandemic when digital engagement soared. In the fiscal year ending September 2024, Plarium contributed around $615 million in revenue and $110 million in EBITA to Pixel United, Aristocrat’s digital division.

Aristocrat CEO Trevor Croker said, “The sale of Plarium follows a strategic review into our casual and mid-core gaming assets that we announced in May 2024. With the expanded Aristocrat Interactive business now sitting alongside Aristocrat Gaming and our mobile social casino business, we are increasingly focused on opportunities to lean into Aristocrat’s strengths in regulated gaming content and social slots.”

Reinvestment and future growth strategy

With a clear focus on regulated gaming and social casino markets, Aristocrat plans to reinvest the proceeds from this transaction to strengthen these areas. The company is expected to adhere to its capital allocation framework, which could see funds directed towards organic growth, strategic acquisitions, and shareholder returns.

The Plarium sale also follows Aristocrat’s recent legal victory, where the company secured a preliminary injunction against Light & Wonder over alleged intellectual property infringement concerning its popular Dragon Link game. This demonstrates Aristocrat’s continued commitment to protecting its assets and strengthening its core offerings in regulated gaming.