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 bulletins including the Market Outlook, Market at Midday and Market Wrap. She also interviews ASX CEOs and leading fund managers. She joined FNN in January 2017 with over six years of broadcast journalism experience including with Sky News Business, ABC 1, ABC's The Business and ABC24. She’s also worked as a TV reporter for Prime 7 and WIN News. Jessica has worked in financial planning for over six years with leading wealth managers and in real estate.