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Aristocrat’s Acquisition of Plarium Finalized
Aristocrat, one of the world’s largest online gaming companies with more than fifty years of experience creating experiences for players, has finished its $500m acquisition of the social gaming company Plarium, the company said via a statement. The deal was agreed to about a year ago, but was waiting for final approval to come from regulators.
Industry Looks To Break Into Social Gaming Community
Aristocrat hopes the move will allow it to increase its presence in the mobile social gaming market. Although this is a slight departure from the company’s traditional focus on gambling experiences, the lucrative nature of social gaming makes it a natural offshoot.
“This acquisition is truly compelling as it increases our presence in the high-growth mobile gaming market and substantially increases the digital segment’s pro forma earnings contribution to Aristocrat.The acquisition reiterates our firm commitment to pursuing high growth adjacency and increasing our recurring revenue base,” Trevor Croker, Aristocrat’s Managing Director said.
The huge potential to tap a reservoir of potential new players makes social gaming an intriguing and key emerging market for the online casino industry, which hopes to induce players who might not seek out gambling natively but are already proven mobile gamers.
Retention of Talent Critical
Croker also expressed Aristocrat’s satisfaction with its ability to retain key Plarium personnel during the deal.
One key concern for Aristocrat while negotiating the deal was its ability to integrate Plarium’s expertise as well as operations. The retention of several critical members of the original Plarium management team will allow the organization’s operations to continue uninterrupted at the same high level that induced the purchase, avoiding ramp up time and bringing immediate value to Aristocrat.
“Importantly, the acquisition is expected to be EPSA accretive in year one and key management personnel have remained in the business. We are delighted to have Plarium and its exceptionally talented team join the Aristocrat family; we look forward to continue building our already very successful digital business together, for the benefit of Aristocrat’s shareholders and other stakeholders,” he said.