Aristocratic leisure (ASX:ALL)global leader in entertainment and gaming content, announced the sale of its mobile gaming subsidiary, Plarium Global, to Swedish group Modern Times for up to $820 million.
Known for its electronic gaming machines and digital gaming platforms, Aristocrat operates in three main sectors: traditional gaming, mobile game publishing and regulated real money online gaming.
Plarium, acquired by Aristocrat in 2017, is a mobile game developer recognized for popular titles such as “Raid: Shadow Legends” and “Vikings: War of Clans.” Under the terms of the agreement, Aristocrat will receive a fixed sum of $620 million, with an additional $200 million contingent on Plarium achieving certain performance goals between 2025 and 2028. The company contributed approximately $615 million of dollars of revenue to Aristocrat’s Pixel United division in the year ending September 30, 2024.
This move follows Aristocrat’s strategic review of its casual and mid-core gaming assets, which launched in May 2024. Aristocrat CEO Trevor Croker commented on the divestment, stating: “The sale of Plarium allows us to further leverage to our core strengths in the regulated gaming content and social slots sectors.”
The transaction is expected to close in the first half of 2025, subject to regulatory approval.
Additionally, Aristocrat continues its review of another gaming subsidiary, Big Fish Games, with a potential goodwill impairment charge of $110 million expected in its FY24 results.