Australian gambling company Aristocrat Leisure announced it will sell its Plarium mobile game developer to Stockholm-listed Modern Times for up to $820 million as it shifts focus towards real-money gaming markets.
The deal is expected to close in the first quarter of 2025 and consists of a fixed consideration of $620 million and a contingent consideration of up to $200 million, subject to the achievement of certain financial targets over calendar years 2025 to 2028.
The newly merged entity is projected to achieve more than SEK 12 billion ($1.11 billion) in annual revenue, with adjusted EBITDA exceeding SEK 3 billion, according to Modern Times.
Aristocrat is selling Plarium due to a shift in business focus. The gambling company noted it wants to concentrate on slot machines, social casinos, and real money gaming.
Aristocrat said that acquiring Plarium at the time allowed it to diversify its portfolio, which was especially beneficial during the COVID-19 pandemic. However, the developers no longer fit well into its updated strategy.
Raid: Shadow Legends
Plarium Global, the game development studio known for creating RAID: Shadow Legends, an acclaimed squad-based role-playing game, fits well with Modern Times “and the deal results in one of the strongest mid-core mobile gaming portfolios in the industry,” Modern Times said in a separate statement.
The sale of Plarium by Aristocrat’s Pixel United arm follows a strategic evaluation of the group’s casual and mid-core gaming portfolio announced in May. Pixel United’s first half bookings for ‘RPG, Strategy and Action’ fell to AUD 283.7 million ($186.50 million) from AUD 296.4 million, and ‘Casual’ game bookings declined to AUD 97.2 million from AUD 104.6 million. Aristocrat is due to report its 2024 annual earnings on Wednesday.
Aristocrat said its strategic review of Big Fish Games, another unit of Pixel United, is ongoing and flagged a goodwill impairment charge of $110 million for the business.
Citi analysts said while Big Fish remains to be divested, the Plarium sale addresses a key bearish concern due to below-consensus fiscal 2025 Digital forecasts, which they said they would review following Aristocrat’s results.
Original article: https://www.yogonet.com/international/noticias/2024/11/12/85063-aristocrat-to-sell-plarium-mobile-game-developer-to-modern-times-group-for-820m
