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Australian Casino Giant Aristocrat Acquires Social Gaming Company Plarium For $500 Million

Australian based casino company Aristocrat has acquired Israeli developer of casual games Plarium for $500 million. This deal is equivalent to 10x Plarium’s annual earnings before tax deprecation and amortization. Plarium is best known for their mobile games that include War of Clans, Sparta and War of Empires.

This move by the ASX100 listed gaming company is very interesting as it shows Aristocrat are looking to expand their real money and social casino business to the much more lucrative world of mobile gaming. Aristocrat are already amongst the top 5 social publishers in the free-to-play casino market thanks in large to their 2012 acquisition of Product Madness.

Once completed the Plarium acquisition is expected to make up 22% of Aristocrat’s annual revenue. CEO of Aristocrat Trevor Croker explained the thinking behind the acquisition,” Aristocrat has continued to deliver significant growth and outstanding results in our Digital social casino business. The acquisition of Plarium allows Aristocrat to expand our addressable market into logical adjacent segments in the fast growing mobile gaming market.”

With the Plarium acquisition, Aristocrat now gets an opportunity to expand it addressable market beyond the social casino segment which is “only around $3.2 billion”. The overall mobile and web games market is worth over $40 billion and according to Croker the Plarium acquisition will,” provides us with a stronger platform to target the US$43.6 billion overall mobile and web games market as growth segments.”

Author: Victor

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