Key points:
- Aristocrat to sell Plarium to MTG for $620m, with up to $200m in contingent consideration
- Proceeds from the sale will support Aristocrat’s focus on core gaming and social casino growth
- The transaction is expected to close in the first half of 2025, pending regulatory approvals
Aristocrat Leisure has announced the sale of its mobile gaming subsidiary, Plarium Global, to Modern Times Group (MTG) for a fixed consideration of $620m.
The deal also includes contingent consideration of up to $200m, conditional upon achieving specified financial targets between 2025 and 2028.
The divestment follows a strategic review initiated by Aristocrat in May 2024, aimed at refining its focus on regulated land-based gaming, real money gaming and social casino markets.
Under the terms of the transaction, MTG will pay $600m upon closing, with an additional $20m deferred until 2026.
The sale marks a key shift for Aristocrat, which acquired Plarium in 2017. During its ownership, Aristocrat leveraged Plarium’s digital capabilities, enhancing its diversification and supporting its digital transformation, particularly during Covid-19.
Good to know: Pending customary regulatory approvals, Aristocrat expects the sale of Plarium to conclude in the first half of 2025. The strategic review of Big Fish Games, another of Aristocrat’s casual gaming assets, remains ongoing.
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.”
For the fiscal year ending September 2024, Plarium contributed approximately $615m in revenue and $110m in EBITA to Pixel United, Aristocrat's digital division.
However, the company anticipates a gain on sale compared to Plarium’s book value, estimated at $450m as of September 2024.
The transaction aligns with Aristocrat’s ongoing strategic shifts and follows other recent developments, including a preliminary injunction obtained against Light & Wonder over alleged intellectual property infringement related to its Dragon Link game.
Aristocrat’s plans for the proceeds from the sale are to further its growth within regulated gaming and social casino markets, following its capital allocation framework.
