Aristocrat buys Israeli online gaming company Plarium

Pokies manufacturer Aristocrat Leisure says it will buy Israeli social-gaming company Plarium for $US500 million, a move that will increase the company’s exposure to the fast-growing digital market.

News of the deal lifted 4.9 per cent in early trade to $21.81.

The deal, which also includes an earn-out arrangement payable to Plarium shareholders, will increase Aristocrat’s digital footprint to 22 per cent from 14 per cent of revenue. It comes after Aristocrat (ALL) bought social-casino operator Product Madness in 2012.

“Plarium provides a unique opportunity to continue and accelerate this growth by diversifying into attractive new mobile gaming segments, including strategy, RPG and casual,” said Aristocrat chief executive Trevor Croker.

Plarium has more than 1200 employees and multiple offices throughout Europe, Israel and the US. Its most popular game to date is Vikings: War of Clans.