MTG will make an initial payment of $600 million upon closing, with a deferred $20 million scheduled for payment in 2026.
Aristocrat Leisure has announced it will sell its mobile gaming arm, Plarium Global, to Modern Times Group (MTG) for a set price of $620 million.
Additionally, the deal includes potential performance-based payments of up to $200 million, contingent upon achieving specific financial milestones between 2025 and 2028.
This divestment is part of a strategic realignment Aristocrat began in May 2024, aimed at concentrating on its core areas: regulated land-based gaming, real-money gaming, and social casino markets.
MTG will make an initial payment of $600 million upon closing, with a deferred $20 million scheduled for payment in 2026.
The sale represents a significant shift for Aristocrat, which initially acquired Plarium in 2017. During its ownership, Aristocrat leveraged Plarium’s digital expertise to enhance its diversification and drive digital transformation, especially throughout the pandemic.
Notably, the sale is subject to standard regulatory approvals, with Aristocrat projecting completion in the first half of 2025. Meanwhile, the strategic review of Big Fish Games, another of Aristocrat’s casual gaming assets, is still underway.
Aristocrat CEO Trevor Croker commented:
“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 around $615 million in revenue and $110 million in EBITA to Pixel United, Aristocrat’s digital division.
The sale is expected to yield a gain relative to Plarium’s book value, estimated at $450 million as of September 2024.
This move aligns with Aristocrat’s broader strategic goals and recent developments, including securing a preliminary injunction against Light & Wonder over alleged intellectual property infringement concerning its Dragon Link game.
Proceeds from the sale are intended to support Aristocrat’s continued growth within regulated gaming and social casino markets, in line with its capital allocation strategy.