Aristocrat Leisure Limited
Aristocrat Announces the Sale of the Plarium Mobile Gaming Business to Modern Times Group for an Enterprise Value of up to $820M
Aristocrat Leisure Limited announced that its subsidiary, Pixel United Holdings Limited, has entered into a binding agreement for the sale of Plarium Global Limited (Plarium) for a fixed consideration of $620 million, with contingent consideration of up to $200 million to Modern Times Group (MTG) (Nasdaq Stockholm: MTG B), an international, mobile-first gaming group that offers a wide range of popular game franchises.
Following the strategic review announced in May 2024, the divestment of Plarium is an important milestone for Aristocrat as it focuses on growth across its regulated gaming strength in core land-based gaming, real money gaming and social casino opportunities.
The total consideration for the sale comprises:
• fixed consideration of US$620 million, comprising US$600 million payable upon closing of the transaction and a deferred payment of US$20 million payable in April 2026; and
• contingent consideration of up to US$200 million, subject to the achievement of certain financial targets over calendar years 2025 to 2028.
Proceeds from the transaction will be deployed to fund Aristocrat’s longer term growth strategy in line with its capital allocation framework. The transaction is expected to enhance Aristocrat’s revenue growth rate and margins going forward.
Acquired in October 2017, Plarium generated an internal rate of return (IRR) in the mid-teens during the period of Aristocrat’s ownership. It provided capability and digital expertise across Aristocrat, diversification of its portfolio through the COVID-19 period and continues Aristocrat’s successful acquisition track record.
Aristocrat’s Chief Executive Officer and Managing Director, Trevor Croker, said: “The sale of Plarium follows a strategic review into our casual and mid-core gaming assets that we announced in May 2024. With the expanded Aristocrat Interactive business now sitting alongside Aristocrat Gaming and our market leading mobile social casino business, we are increasingly focused on opportunities to lean into Aristocrat’s strengths in regulated gaming content and social slots.
“Aristocrat has incorporated a range of Plarium’s strategic capabilities and mobile content know-how into its core gaming operations over the past seven years, benefitting from digital marketing and UA management capability, enhanced live operations, and scaling and growing our combined social casino business. We are pleased also to have achieved an IRR from the acquisition of Plarium in excess of our target rates. Our ownership of Plarium has helped to drive Aristocrat’s digital transformation, extending our track record of successfully acquiring businesses to accelerate our strategy.”
In the unaudited financial results for the year to 30 September 2024, Plarium contributed approximately $615 million, $166 million and $110 million to Pixel United’s Revenue, Segment Profit and EBITA post-D&D expenditure, respectively. Aristocrat expects the sale of Plarium to be mid to high single-digit percentage points dilutive to NPATA in FY25 on an annualised basis.
The total consideration from the sale, comprising of $620 million fixed consideration and up to $200 million contingent consideration, compares to a Plarium book value of approximately $450 million as at 30 September 2024 and is expected to result in a gain on sale in FY25, with the final amount to be determined based on the closing date and other customary closing adjustments.
The transaction is expected to close in the first half of calendar year 2025 and is subject to customary closing conditions, including receipt of regulatory approvals.
Aristocrat Leisure Limited
Aristocrat Invests in Kinectify, Appoints Jason Walbridge as Board Member
Kinectify, a pioneering technology firm spearheading risk management innovation in gaming, has announced an incremental investment by Aristocrat Leisure Limited (Aristocrat).
Aristocrat’s investment in Kinectify is joined by current investors contributing additional capital underscoring confidence in Kinectify. Contributing investors include Acies Investments, the Eastern Band of the Cherokee Indians, Eilers & Krejcik Gaming, and the former CEO of Caesars Entertainment, Mark Frissora. Concurrently, gaming executive Jason Walbridge has joined the Kinectify board of directors as Aristocrat’s representative to enhance strategic benefits between Aristocrat and Kinectify.
Walbridge brings extensive global operational experience in both land-based and online gaming markets. For over two decades, he has been a leader in the gaming industry. In 2022, Walbridge commenced an advisory role with Aristocrat, focused particularly on the development of their online real money gaming business, Anaxi.
Prior to his current association with Aristocrat, Walbridge held key executive positions in other established gaming entities. He served as the Chief Operating Officer of NYX Gaming and became Chief Operating Officer of SG Digital following NYX Gaming’s acquisition by Scientific Games (now Light & Wonder). Preceding these two roles, Walbridge spent 18 years with Aristocrat, holding various executive positions across global markets. His deep understanding of industry dynamics, coupled with a proven track record of driving growth and innovation, makes him an invaluable addition to Kinectify’s board.
Walbridge said: “I am thrilled to work with Kinectify to pioneer innovation in risk management across the gaming ecosystem. I’ve been impressed by Kinectify’s track record so far with its AML and responsible gaming technology, and I’m excited to facilitate deeper collaboration between our companies.”
Aristocrat Leisure Limited has rebranded its online Real Money Gaming (RMG) division as Anaxi.
Aristocrat announced the creation of a dedicated online RMG business in February 2022, as part of its strategy to enter and grow in this important Gaming adjacency.
Fresh branding will support the execution of Anaxi’s “build and buy” growth strategy, including by helping the business continue to attract and retain great online RMG talent, and foster team culture.
Anaxi Chief Executive Officer Mitchell Bowen said: “We’re excited to announce Anaxi as the name of our emerging online Real Money Gaming business at Aristocrat.
“We look forward to working with our partners as Anaxi reimagines the world’s greatest gaming content online and begins our journey towards becoming the most trusted name in online RMG globally.
“We are thrilled to be showcasing our new Anaxi brand at G2E Las Vegas and invite our customers, partners and players to ‘Experience Anaxi’ with us on the Aristocrat Gaming stand.”
Anaxi’s first regulated iGaming products will launch with two major customers in the US by the end of 2022. The launch of the Anaxi brand comes on the heels of Aristocrat’s agreement to acquire B2B online RMG supplier Roxor Gaming, as part of Anaxi’s growth strategy.
Anaxi is a third business unit within Aristocrat Group sitting alongside Aristocrat Gaming and the Pixel United mobile-first publishing business.
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Wynn Resorts CEO Matt Maddox is stepping down from the company as of 31 January 2022 and will be replaced by Wynn Interactive CEO Craig Billings.
Maddox will remain on the Board of Directors of both Wynn Macau Ltd and Wynn Interactive Ltd until the end of 2022 following a request from his fellow directors.
Billings, the former Wynn Resorts President and CFO who was only recently appointed to lead the company’s interactive arm, will officially become Wynn Resorts CEO on 1 February 2022.
The departure of Maddox comes less than four years after he was first appointed CEO in February 2018 and tasked with rebuilding the company’s brand and reputation following the departure of founder Steve Wynn amid allegations of sexual misconduct. He achieved that and more, but has since spent the past two years navigating Wynn Resorts through the COVID-19 pandemic – a battle that continues to this day.
Matt Maddox said: “This has not been an easy decision. I am leaving a company that I love and that’s full of people I admire. But I believe now is the right time for me and for the business.
“The last four years have been challenging but extremely rewarding, and I am incredibly proud that we accomplished so much. We quickly resolved litigation that had distracted the company for seven years. We reorganized the company’s leadership team and focused on our 28,000 employees, rebuilding and strengthening our powerful culture to focus on a common purpose: create and deliver the best guest experiences.
“We led the industry with our response to the pandemic; many other industries looked to us for advice, guidance, and leadership as a result. I knew our biggest asset is our people, which is why we paid them throughout the shut down and why our culture has never been stronger. That investment is now paying off as Wynn Las Vegas and Encore Boston Harbor are generating more profit and market share since we opened our resorts, all while maintaining five-star service levels. I also look forward to serving on the Wynn Macau Board throughout 2022 to assist with the concession renewal and help solidify our place as the premium operator in the region.”
Billings joined Wynn Resorts as CFO in March 2017 and has been a board member of Wynn Macau Ltd since August 2018, having previously held executive and board positions with Aristocrat Leisure Limited, NYX Gaming Group, IGT, and Goldman Sachs.
“Having worked so closely with Matt and the Board, I appreciate the confidence they have placed in me and look forward to building upon the legacy of excellence we’ve established,” Billings said.
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