The acquisition by Aristocrat Leisure Ltd of U.S. slot machine specialist Video Gaming Technologies Inc (VGT) has been “highly accretive” to Aristocrat’s U.S. operations, more than tripling U.S. recurring revenue, said Aristocrat’s chief executive Jamie Odell (pictured) at the firm’s annual general meeting on Friday.
VGT, a maker of so-called ‘Class II’ gaming machines used in North America’s tribal gaming market, was acquired by Aristocrat in a deal closed in October 2014.
“This outstanding strategic acquisition is highly accretive, more than tripling our U.S. recurring revenue footprint, and it brings together complementary businesses with aligned cultures and a shared focus on great games and outstanding customer service,” Mr Odell stated.
He added however that the group expected increased debt levels associated with the VGT acquisition, as well as “a significant increase in interest costs” over the 2015 fiscal year.
Aristocrat paid US$1.28 billion in cash for VGT, according to company filings.
Mr Odell reiterated comments made during the 2014 fiscal results that “regulatory change” had brought “disappointing results” for Aristocrat in Japan and Asia Pacific.
He also said that to face the challenge of the global competition for top management talent, Aristocrat would commission an “independent review of the board” to seek advice on “succession planning” and for “improving board skill sets and experience wherever opportunities present”.
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