Aristocrat completes VGT acquisition, seeks further growth

Australia’s Aristocrat Leisure said it has completed its acquisition of U.S.-based Video Gaming Technologies and plans to use the additional cash flow to seek further opportunities for growth.
In an Australian Stock Exchange filing, Aristocrat said it had now received all regulatory approvals for the VGT purchase. It said it has put together an interim leadership structure until a new head can be found.
Aristocrat Leisure said in July that it agreed to buy VGT for $1.28 billion. VGT mostly provides Class II gaming machines for the leased tribal market, with an installed base of 20,200 machines. It is headquartered in Tennessee and employs about 610 staff. For 2013, the company reported revenue of $236 million.
Aristocrat said the acquisition is expected to provide a “low-mid teens” boost to earnings.
“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, “ said CEO Jamie Odell.