Australian gaming equipment maker Aristocrat Leisure has confirmed it is in advanced discussions to acquire US-based Video Gaming Technologies for US$1bn.
A deal for Franklin, Tennessee-based Video Gaming Technologies (VGT), which makes slot machines primarily for Native American casinos, would be a substantial investment in the US market for Aristocrat.
Sydney-based Aristocrat, which has a market cap of over $2.82bn, confirmed that it is conducting final due diligence, however notes that there is no certainty that discussions will ultimately lead to a transaction. While VGT has been for sale on and off for years, discussions with Aristocrat have only been taking place in recent months. A successful deal would be a significant step for Aristocrat as it continues to expand in the US gaming market.
VGT is a maker of Class II gaming machines, whereby the game outcome is centrally determined rather than via the individual machine. VGT has more than 20,000 terminals in more than 145 locations in the US and Mexico with nearly all games leased to casinos under revenue sharing agreements.