Aristocrat Leisure Limited has announced the sale of its Plarium mobile gaming business to Modern Times Group

Aristocrat Leisure Limited (ASX: ALL) announced that its subsidiary, Pixel United Holdings Limited, has completed a pivotal agreement to sell Plarium Global Limited for a base amount of US$620 million, with the possibility of additional payments of up to US$200 million to Modern Times Group. This strategic divestment, arising from a comprehensive review in May 2024, represents a significant turning point for Aristocrat as it aims to concentrate on high-growth opportunities in critical sectors, including land-based gaming, real-money gaming, and social casino markets. The well-structured deal encompasses a fixed payment of US$620 million, comprised of US$600 million to be paid at the transaction's close and a deferred payment of US$20 million due in April 2026. Furthermore, contingent payments of up to US$200 million will be available, depending on attaining specific financial milestones during the 2025 to 2028 periods.

The capital generated from this transaction will be crucial in fueling Aristocrat's ambitious long-term growth strategy, reinforcing its robust capital allocation framework. This decisive action is poised to accelerate revenue growth and boost profit margins significantly.

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