| June 25
June 25 Australian gaming company Aristocrat
Leisure Ltd is in talks to purchase U.S. competitor
Video Gaming Technologies Inc for about $1 billion, according to
people familiar with the matter.
A deal for Franklin, Tennessee-based Video Gaming
Technologies (VGT), which makes slot machines primarily for
Native American casinos, would be a big bite for Sydney-based
Aristocrat, which has a market cap of over $2.82 billion.
While VGT has been for sale on and off for years,
discussions with Aristocrat have been taking place in recent
months, said the people familiar with the talks, who asked not
to be named because the matter is private. The talks could fall
apart at any moment, the people cautioned.
A successful deal would be a significant step for Aristocrat
as it continues to expand in the U.S. gaming market.
Representatives for Aristocrat and VGT did not respond to
requests for comment.
The makers of slot machines, known broadly as gaming
equipment makers, are questioning their strategic relevance as
they face an aging population of users. Many are looking to
Internet-based gaming as an option for growth in new,
As companies look for relevance on the internet and mobile
devices, consolidation has begun in the industry as evidenced by
two mergers last year. Bally Technologies Inc purchased
SHFL Entertainment Inc and Scientific Games Corp
purchased WMS Industries Inc.
Another gaming equipment maker, International Game
Technology, is currently exploring a sale, as previously
reported by Reuters.
(Reporting by Mike Stone; Editing by Meredith Mazzilli)