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.