Poker machine supplier Aristocrat Leisure is further expanding its digital operations with the acquisition of Seattle-based social gaming company Big Fish Games for $US990 million ($A1.4 billion).
The acquisition follows Aristocrat's $US500 million acquisition of Israeli social gaming company Plarium Global, which was completed in October.
Aristocrat on Thursday also reported a 41.3 per cent lift in net profit for the year to September 30 to $495.1 million on the back of a strong performance across its global operations, especially in the Americas, and significant growth in the digital business.
The poker machine supplier anticipates continued growth in the 2018 financial year.
Aristocrat said the acquisition of Big Fish Games will make Aristocrat's digital business the second biggest provider of social casino games by revenue globally.
Big Fish is a global publisher of free-to-play games that focus on specific segments, including social casino, social gaming and premium paid games.
Aristocrat says Big Fish's social casino app, Big Fish Casino, is a top-ranking social casino app globally.
Big Fish's social gaming titles include Gummy Drop! and Fairway Solitaire.
Big Fish will operate as a stand-alone business alongside Aristocrat's other digital operations, Product Madness and Plarium.
"The strategic and financial benefits from the acquisition are highly compelling," Aristocrat chief executive Trevor Croker said on Thursday.
"The acquisition of Big Fish will immediately provide scale across our entire digital platform."
For the year to September 30, Big Fish generated revenue of $US458 million and earnings of $US83 million.
Aristocrat, which expects Big Fish will add to earnings per share in the first full-year of ownership, will fund the acquisition through cash and a $US890 million debt facility.
Big Fish has about 700 employees and five studios in the US.
Mr Croker said Aristocrat had delivered high-quality results over the year despite mostly flat markets and increasing competition.
"Industry-leading content, hardware and technology, coupled with effective execution focused on our highest-value opportunities, once again underpinned our performance," he said.
CMC Markets chief market analyst Michael McCarthy said Aristocrat's financial results were strong and in line with expectations, with Big Fish looking like a useful bolt-on acquisition.
Aristocrat's share price spiked at a record $24.32 just after the results were released but fell during morning trade and closed down $1.61, or 6.8 per cent, at $21.99.
ARISTOCRAT'S NET FY NUMBERS
* Net profit up 41.3pct to $495.1m
* Revenue up 15.3pct to $2.45b
* Final dividend 20 cents fully franked, up from 15 cents
