Published

Aristocrat to purchase VGT for $1.3bn

Aust

Aristocrat
ralian slot machine manufacturer Aristocrat Leisure has agreed to buy US gaming machine provider Video Gaming Technologies (VGT) for $1.3bn.

The cash purchase will give Aristocrat access to VGT's 20,000 slot and bingo machines in the US, alongside the 8,000 it already owns.

The majority of VGT's machines are leased to tribal casinos in Oklahoma, while the company has also expanded into California and Washington.

"Aristocrat appears to have made a shrewd acquisition," said Ben Le Brun, an analyst at brokerage firm OptionsXpress in Sydney. "VGT has a strong portfolio of gaming machines that will significantly bolster growth in the highly lucrative US market and give it greater potential in other areas of the world as well."

VGT generated pre-tax profit of $157m in 2013, all of which is recurring and underpinned by contracts with tribal casinos, according to the company.

The acquisition reflects a new focus on the US market for Aristocrat, where they reported 4.6% growth in the six months before March 2014, compared to a 19% drop in Australian earnings.

" VGT provides a unique opportunity to accelerate our growth in the US recurring revenue segment, which has for some time been an important strategic objective of Aristocrat,” said CEO Jamie Odell.

Premium+ Connections
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
 
Premium
 
Premium
 
Premium
 
Premium Connections
Consultancy
Executive Profiles
Chicken Ranch Casino
The Responsible Gambling Affiliate Association (RGAA)
Catena Media
Gambling Commission
Follow Us
The most prestigious Awards in the industry are heading to the Philippines! The Global Gaming Awards Asia-Pacific will recognise and reward (as the name suggests) the strongest performers from the Asia-Pacific gaming industry across the previous 12 months.
This year's winners will be announced at a luncheon ceremony on Day 2 of SiGMA Asia, 4th June, in Manila.
The eleventh annual Global Gaming Awards Americas will recognize and reward the gaming industry's strongest performers across the previous 12 months. These are the most prestigious and trusted Awards in the industry and have gained respect amongst industry heavyweights, due to the strict rules and procedures put in place.

Facing Facts: Operator Q3s from across the globe

Gambling Insider compares Q3 2023 results from major gamblin...

Taking Stock: Operators and suppliers across the world

Sticking with our theme of gambling across the globe, Gambli...

CEO Special: Jade Entertainment and Gaming CEO Joe Pisano - down to earth

Jade Entertainment and Gaming CEO Joe Pisano speaks to Gambl...

CEO Special: Betfred CEO Joanne Whittaker - saying it as it is

Betfred CEO Joanne Whittaker joins Gambling Insider Editor T...