Australian slot manufacturer Aristocrat Leisure Ltd. announced it has completed the acquisition of Tennessee-based Class II gaming machine manufacturer Video Gaming Technologies Inc. (VGT), in a deal worth US.28 billion. Aristocrat also said it would consider other “accretive opportunities.”
The company achieved all necessary regulatory and other approvals required with respect to its agreement to acquire VGT, Aristocrat said in a filing to the Australian Securities Exchange.
VGT had an installed base of approximately 20,200 leased machines at the end of last year, according to previous filings. It will be run as a business unit of Aristocrat, maintaining its focus on Class II products, the Australian gaming manufacturer said.
Aristocrat has put in place an interim leadership structure “while a rigorous global search for a permanent leader is undertaken,” it said. The deal had first been announced in July.
“As I have noted previously, this is a strategically and financially compelling opportunity for both businesses,” Jamie Odell, chief executive of Aristocrat, said in the statement. “VGT brings a complementary product offering to Aristocrat and will immediately step change our scale, and significantly accelerate our growth in the critical U.S. recurring revenue segment.
“The addition of VGT comes at an ideal time for Aristocrat, and will build on the sustained operational momentum we have achieved in our core Class III business, particularly in key U.S. for-sale and recurring revenue segments. This transaction is highly cash-flow generative. As previously flagged, acquired free cash flows will also allow Aristocrat to consider further accretive investments in digital and other organic and inorganic opportunities over the medium term to sustain our growth.”
