Australian gaming firm to buy VGT for $1.3 billion

The Australian gaming firm, Aristocrat Leisure Limited, has agreed to buy Franklin-based Video Gaming Technologies Inc. in a deal valued at $1.3 billion.

VGT makes and sells video gaming machines, primarily to tribal gaming centers in the United States. The company currently leases about 20,000 terminals nationwide, mainly in tribal casinos in Oklahoma, Washington and California.

Last year, the company brought in $236 million in revenue and is expected to top that number in 2014, company officials said.

VGT, which was founded in 1991, has experienced dramatic growth since entering the tribal gaming market in 2001. As a result of that growth, VGT topped of the list of Inc. magazine fastest-growing companies in 2005.

For Aristocrat, the deal offers the company the chance to grow its market share in the U.S. The deal would more than triple the company's overall footprint.

"The strategic and financial benefits are compelling for Aristocrat shareholders," said Aristocrat CEO Jamie Odell. VGT "provides a unique opportunity to accelerate our growth in the U.S., which has been an important strategic objective (for some time)."

Once the deal is finalized, VGT, which currently has more than 600 employees, will operate as a division of Aristocrat and will continue to look for growth opportunities in the U.S. market.

"I am very proud of the success we've achieved in the past 23 years," said Jon Yarbrough, VGT founder and CEO. "The hard work and support of VGT's associates, and of course the loyalty of our customers, have positioned VGT to be a leader."

The deal is expected to close by the middle of fiscal 2015.