Aristrocrat to buy 100% of Israeli gaming company

Company News

by Jessica Amir

Aristrocrat (ASX:ALL) has expanded its digital footprint by entering into an agreement to snap up an Israeli gaming company, Plarium for US$500 million cash.

The purchase will increase the poker machine giant’s exposure to the online growing market with Aristrocrat’s digital revenue contribution to increase from 14 to 22 per cent.

The consideration also involves an earn-out arrangement payable to Plarium following the end of the 2017 and 2018 years.

The purchase of Plarium is tipped to be earnings per share accretive in FY18.

The buy is expected to complete at the end of this calendar year.

Shares in Aristrocrat (ASX:ALL) are trading 4.95 per cent higher to $21.83.
 

Jessica Amir

Finance News Network
Jessica is a senior finance journalist and presents the Market Outlook, Market at Midday and Market Wrap. She also presents ASX company news and interviews CEOs. She joined FNN in January 2017 with six years of broadcast journalism experience. She worked as a journalist and producer with Sky News Business, ABC 1, ABC's The Business and ABC24. She also worked in regional Australia for Prime 7 and WIN News as a TV reporter. In her prior life she worked as a financial planner.