Aristocrat Leisure (ALL) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition accelerates transformation into a leading Western mobile gaming company, doubling size and strengthening evergreen IP portfolio.

• Plarium brings top-grossing RPG Raid: Shadow Legends, three additional strong IPs, and a talented global team.

• Proprietary tech platforms (Plarium Play, GoGame) and strong LiveOps capabilities enhance group synergies.

• Acquisition positions the group as the #1 listed mobile gaming company in Europe and top 10 in the West.

• Strategic focus on both mid-core and casual games, expanding audience overlap and portfolio diversification.

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, resulting in no shareholder dilution.

• Combined group expected to nearly double revenue and EBITDA, with a 25% margin and 67% cash flow conversion.

Synergies and expected cost savings

• Significant synergies expected from integrating tech platforms, marketing tools, and LiveOps expertise.

• Revenue synergies prioritized over cost savings; knowledge sharing and consolidation of systems to drive value.

• Double-digit million dollar synergy contribution anticipated over the next years.