Aristocrat Leisure (ALL) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition accelerates transformation into a leading pure-play mobile gaming company, doubling revenue and scale.

• Adds top-grossing RPG Raid: Shadow Legends and three other strong IPs, enhancing both mid-core and casual portfolios.

• Strengthens position as a top 10 Western mobile games developer, with a focus on evergreen IPs and global reach.

• Plarium's proprietary tech platforms (Plarium Play, GoGame) offer significant synergies and operational advantages.

• Acquisition aligns with strategy to build a diversified, scalable gaming group with strong audience overlap.

Financial terms and conditions

• Upfront purchase price of $620 million: $600 million paid at closing, $20 million deferred to 2026.

• Two performance-based earnouts: $30 million based on Raid's 2025 revenue, up to $170 million for 17% CAGR growth by 2028.

• Deal financed with $140 million cash and $460 million in new debt, moving from net cash to net debt position.

• No equity dilution; loans denominated in USD with competitive terms.

Synergies and expected cost savings

• Significant revenue and operational synergies expected from integrating tech platforms and LiveOps expertise.

• Knowledge sharing, marketing, and distribution consolidation to drive double-digit million-dollar contributions.

• Monetization know-how from Plarium to benefit other group studios.