A deal was reached between the Australian giants Aristocrat and the Israeli social gaming platform Plarium in a deal worth $500 million. It is believed that Aristocrat's take over will drastically increase their presence in the industry of which eventually will dramatically increase their revenue.
Mr. Avraham Shalel, CEO and founder of Plarium together with 12 other key members of the team, are still going to lead the company with their same position until 2020 so to defer part of the payments which are due to them.
Mr. Shalel said; I am very proud of the success we have achieved since establishing the business in 2009. The hard work and efforts of Plarium’s employees have positioned Plarium as a world class mobile game publisher. Aristocrat is an ideal partner for us given our common aspiration to be a global leader in social gaming, which will be accelerated through leveraging Aristocrat’s financial, strategic and operational resources.
On the other hand, director and CEO of Aristocrat said that; "The acquisition of Plarium allows Aristocrat to expand our addressable market into logical adjacent segments in the fast growing mobile social gaming market. This immediately expands our addressable market from US$3.2 billion in the Social Casino segment, to US$25.4 billion when including the Strategy, Casual and RPG segments. It also provides us a stronger platform to target the US$43.6 billion overall mobile and web games market as growth segments."
The deal should be completed by next December 2017 with Deutsche Bank being the financial advisor for Plarium while Citi will be acting as financial advisor for Aristocrat.
