Australian slot manufacturing giant Aristocrat Leisure Industries announced that it is acquiring all the assets of Illinois-based gaming product and system supplier Paltronics Inc. The company also reportedly is in talks to acquire Tennessee-based Class II slot supplier Video Gaming Technologies, Inc.
Paltronics provides a range of value-added applications for in-game media windows and bonusing applications for EGMs, video poker machines and table games. The company is a market leader in progressive jackpots, with Paltronics jackpot controllers already deployed in Aristocrat’s successful linked progressive products including Hyperlink and Xtreme Mystery.
In North America, Paltronics provides a complementary product offering to Aristocrat’s OASIS 360systems portfolio, with digital media, and venue-wide progressive bonusing products.
In Australia, New Zealand and throughout Asia, Aristocrat will maintain the relationship with the independently-owned Paltronics Australasia Pty. Limited, which has acted as the exclusive distributor for Paltronics products in the regions.
This acquisition will further strengthen Aristocrat’s OASIS 360systems offer in North America, while delivering incremental product synergies, access to new technologies and product features, cost savings and integration benefits, according to a press release from the company. The deal will also secure Aristocrat’s access to key technology underpinning the company’s new generation of linked progressive products.
“This is a compelling acquisition that will deliver significant value across key strategic segments, particularly our leading U.S. casino systems business and in the fast-growing linked progressive and jackpot markets,” said Jamie Odell, CEO and managing director of Aristocrat.
“This acquisition is another demonstration of Aristocrat’s readiness to make strategic and measured investments behind our core value drivers, consistent with our growth plans and our focus on delivering value for shareholders.”
In other Aristocrat news, the company has confirmed that it is in merger/acquisition discussions with Tennessee-based Class II gaming machine manufacturer Video Gaming Technologies.
VGT is one of the leading designers, manufactures and distributors of centrally determined gaming systems and Class II gaming terminals, supplying recurring-revenue products to customers in the U.S. and Mexico.
A statement from Aristocrat confirmed that discussions are ongoing between the two companies, but qualified that confirmation buy stating, “There is no certainty that discussions will ultimately lead to a transaction.”
“Aristocrat has a disciplined approach to transactions and would only contemplate an acquisition that is consistent with its strategy, enhances shareholder value and is materially accretive to earnings and cash flow,” the statement said. “Aristocrat will keep shareholders informed of any further developments in accordance with our continuous disclosure obligations.”
