Aristocrat moves into social gaming with US acquisition

Aristocrat moves into social gaming with US acquisition
POKER machine giant Aristocrat (ASX: ALL) has completed its $1.4 billion acquisition of popular social media gaming company Big Fish Games in a move the company says will drive revenue growth even further.

Aristocrat's deal to secure the Seattle-based Big Fish is part of its expansion strategy into the US and it provides the company with a platform to capitalise on the worldwide boom in mobile games.

"The strategic and financial benefits of this acquisition are highly compelling," says Aristocrat's CEO and managing director Trevor Croker.

"Big Fish will immediately provide scale across our entire digital platform, and our social casino business will become the second largest social casino publisher globally.

"Big Fish's digital-first social casino content and industry leading meta-game capability and applications are highly complementary to Aristocrat's existing and industry-leading land based digital content business."

The hugely popular Big Fish games, which are designed for mobile and laptop include Big Fish, Gummy Drop! and Fairway Solitaire.

Big Fish has about 700 employees and five studios in Seattle and Oakland in the US.

Aristocrat, which is number 15 on our 2017 Sydney Top Companies List, reported a full year profit rise of 41.3 per cent to $495.1 million for the year to September 30, 2017, with revenues of $2.45 billion.

Analysts have noted that 50 per cent of Aristocrat's total revenue is recurring and UBS expects that proportion of recurring revenue to grow further. This gives the company and its investors some degree of certainty over future sales figures.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Get our daily business news

Sign up to our free email news updates.

Please tick to verify that you are not a robot

 
The MBA that helped Epic Environmental’s startup employee become GM and partner
Partner Content
Environmental engineer Romin Nejad began his career at Epic Environmental at a challeng...
Queensland University of Technology
Advertisement

Related Stories

Black Friday no "be all and end all" for sales as marketing costs bite

Black Friday no "be all and end all" for sales as marketing costs bite

November is often dubbed the new December of retail sales with Blac...

Techtronic slapped with record $15m fine for resale price maintenance

Techtronic slapped with record $15m fine for resale price maintenance

The Australian arm of Hong Kong-based supplier Techtronic has been ...

Sydney space tech company HEO launches US office

Sydney space tech company HEO launches US office

Three months after securing $12 million in a Series A round, Sydney...

7-Eleven Australia acquired for $1.7 billion

7-Eleven Australia acquired for $1.7 billion

Convenience store giant 7-Eleven Australia is set to be sold f...