New York-listed gaming supplier Inspired Entertainment has completed the acquisition of Novomatic UK’s Gaming Technology Group. The deal is worth $120m (£97.8m/€109.9m) and covers the six companies within NTG, including Gamestec Leisure, Playnation Limited, AstraGames Limited, Bell-FruitGroup Limited, Harlequin Gaming Limited and Innov8 Gaming Limited.
To acquire NTG, Inspired paid approximately €104.6 million in cash. In connection with the acquisition, Inspired entered into a new term loan facility for £140 million and €90 million and a £20 million revolving credit facility. The term loan facility was used, in part, to finance the acquisition, to pay off existing indebtedness and to pay fees and expenses related to the acquisition and related financing. The refinancing of the current debt is expected to result in a reduction in cost of debt capital.
This acquisition combines Inspired’s position and expertise in server-based gaming, virtual sports and interactive with NTG’s diversified gaming products and popular content, across a complementary customer base. NTG supplies Category B3, C and D gaming terminals to pubs, arcades, motorway service areas and holiday resorts in the UK.
The company will also provide virtual sports products through more than 44,000 retail channels, digital games across more than 100 websites, as well as a variety of amusement entertainment solutions with a total installed base of more than 19,000 devices. In addition to this, Inspired, would also supply gaming systems with associated terminals and content for more than 58,000 gaming machines located in betting shops, pubs, gaming halls and other route operations.
Inspired said it expects to achieve between $12.3m and $13.3m in annual cost synergies within six months of the closing date through shared costs and increased scale. In addition, Inspired said it will make use of shared manufacturing, engineering, software development, field maintenance and customer service to drive growth and cost savings and further expects to reduce capital deployed in the pub gaming sector.