Aristocrat confirms $1.28 billion Video Gaming Technologies acquisition

    Aristocrat Leisure confirmed that it has agreed to buy Video Gaming Technologies for $1.28 billion, expanding in the U.S.
    VGT mostly provides Class II gaming machines for the leased tribal market, with an installed base of 20,200 machines. It is headquartered in Tennessee and employs about 610 staff. For 2013, the company reported revenue of $236 million.
    Aristocrat said the acquisition is expected to provide a “low-mid teens” boost to earnings.
    “VGT has a complementary product offering and provides a unique opportunity to accelerate our growth in the recurring revenue segment, which for some time has been an important strategic objective for Aristocrat,” said CEO and managing director Jamie Odell in a stock exchange filing.
    Aristocrat will finance the purchase through new debt facilities and a $375 million share placement.
    The company said it expects solid growth in net profit after tax for 2014.