News: Aristocrat expands into US with $1.28B buy

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Global provider of gaming solutions Aristocrat Leisure Limited (ASX:ALL) is expanding into the US through the purchase of US competitor Video Gaming Technologies. 

 

Aristocrat has inked a deal to buy the privately owned Tennessee based slot machine maker for $1.28 billion in cash. 

 

Subject to approvals the acquisition is expected to boost Aristocrat’s scale in the North American gaming operations segment when the deal is tied up in the first half of 2015.  

 

Aristocrat says Video Gaming Technologies comes with a highly complementary product suite, cultural alignment and strong cash flows. 

 

The company also believes the acquisition will allow for operational opportunities including product synergies and some potential cost synergies. 

 

Aristocrat Leisure improved its profit to $57.4 million in the first half of the 2014 financial year.