Aristocrat Leisure has achieved all necessary regulatory and other approvals required with respect to its agreement to acquire North American based gaming machine manufacturer Video Gaming Technologies.
As a result, Aristocrat has announced that the acquisition of VGT is completed. As previously flagged, VGT will be run as a business unit of Aristocrat, recognising its success and the benefit of maintaining its focus on outstanding Class II products and customer service.
The company has put in place an interim leadership structure while a rigorous global search for a permanent leader is undertaken.
Mr Odell said: “The fact that we have achieved completion of this transaction with no delays speaks to the fact that both VGT and Aristocrat are reputable, high compliance businesses with constructive regulator relationships. It also demonstrates the level of support for this transaction across both Aristocrat and VGT, and among our customers, which gives me further confidence in its fundamental soundness.
“As I have noted previously, this is a strategically and financially compelling opportunity for both businesses. VGT brings a complementary product offering to Aristocrat and will immediately step change our scale, and significantly accelerate our growth, in the critical US recurring revenue segment,” he added. “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 US for sale and recurring revenue segments. Importantly, 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.
“We are delighted to welcome VGT into the Aristocrat family, and look forward to working together to deliver our full potential for the benefit of Aristocrat shareholders, and all of our stakeholders” Mr Odell concluded.