Aristocrat confirms talks for acquisition of Video Gaming Technologies

    Aristocrat Leisure confirmed it’s in advanced talks to buy Video Gaming Technologies, a U.S. maker and designer of gaming player terminals and systems, in the latest of a series of mergers among suppliers.
    In a statement to the Australian Stock Exchange, Aristocrat noted there could be no guarantee of an eventual transaction and the company will only consider purchases that “are consistent with its strategy, enhance shareholder value and are accretive to earnings.”
    The Australian company gave no further details.
    VGT’s games include the Riverboat Queen multi-game system initially introduced in the Louisiana market, the Treasure Quest series of skill-based games, and Live-Call Bingo.
    News of the potential acquisition follows Canada-based Amaya Gaming’s announcement earlier this month that it will pay $4.9 billion to buy PokerStars and Full Tilt Poker in a move that will potentially see the reintroduction of the poker series into the U.S. market.
    While also this month, Italy’s GTECH confirmed it’s in talks to buy Las Vegas-based International Game Technology.
    GTECH said it “doesn’t anticipate” a capital increase would be necessary to fund the acquisition, and instead it would potentially use a mix of existing cash and equity. There is no assurance an accord will be reached, GTECH said in a statement.
    With a market value of $3.92 billion, or €2.9 billion, the acquisition of IGT would more than double the size of the group. GTECH has a capitalization of €3.34 billion.
    In a recent analyst blog, Zacks noted that the deals come against a backdrop of increasing competition in the gaming sector, at a time when operators are also replacing machines at a much slower rate than in the past.
    “The casino sector has witnessed a tighter spending due to concerns about unemployment levels and the lackluster macroeconomic condition,” it said.