By Stuart Condie


SYDNEY--Aristocrat Leisure will sell its Palarium Global mobile-gaming unit to Sweden's Modern Times Group for up to $820 million as the Australian gaming company increasingly focuses on regulated gaming and slot machines.

Aristocrat on Tuesday said it would receive $600 million upfront, with another $20 million to follow in April 2026. Another $200 million in contingent payments is linked to financial targets over the four years through December 2028.

The sale comes amid Aristocrat's strategic review of gaming assets. It said it was discussing the future of its Big Fish Games unit with third parties, although its Big Fish Social Casino assets are performing well and are not included in the review.

Aristocrat said its fiscal 2024 results, set for release this week, will include a $110 million goodwill impairment against Big Fish Games.

"We are increasingly focused on opportunities to lean into Aristocrat's strengths in regulated gaming content and social slots," Chief Executive and Managing Director Trevor Croker said.

Proceeds from the Palarium sale, which is expected to close in the June half, will help fund Aristocrat's longer-term growth strategy, the company said. Aristocrat expects the transaction to improve its revenue growth rate and margins.


Write to Stuart Condie at stuart.condie@wsj.com


(END) Dow Jones Newswires

11-11-24 1930ET