New York-based private equity firm Hydra Industries has acquired Inspired Gaming Group, the manufacturer of FOBTs and developer of virtual and slots games, for a total valuation of £200 million.
Negotiated with main investor Vituvian Partners LLP and its co-investor in the enterprise, deal stakeholders informed that the acquisition includes cash and shares, had been approved by the boards of Inspired and Hydra. Presently, Inspired’s fiscal year end is September 2016 and the corporate prognosis estimates $110 million incomes with $38 million EBITDA.
Although excluding transactional costs sustained by the deal, Hydra claimed that it would take on Inspired’s corporate debts. Inspired investors would be paid an amalgamation of cash and Hydra issued shares at $10 per stake, depending on the deal’s closing adjustments. Hydra has taken a $20 million private placement with Macquire Capital, to complete its cash contribution, with the supplementary funds being used from its $80 million cash-trust.
Once finalized, Inspired investors will keep 35% of equity, with the company credit lines expected to stay in place.
Hydra kept its investors up-to-date, and informed them that its CEO Lorne Weil would become Inspire Gaming Executive Chairman, with Luke Alvarez retaining leadership of the company. Commenting on the acquisition, Weil stated: “We have been searching for a compelling business that utilizes our skill set to drive growth. We are excited to have the opportunity to partner with Luke and his team as we work together to grow the digital business through increased focus and the deployment of new technology and content.”
“We look forward to not only growing Inspired’s business, but also using it as a platform for potential opportunistic acquisitions of synergistic businesses across its regions. We believe the combination of Inspired’s management team and our experience in utilizing technology and content to drive revenue growth in gaming markets makes us well-positioned to enhance value for our shareholders.”
Alvarez corroborated Weil’s sentiments and said: “We are excited to be partnering with Lorne Weil and Hydra while continuing our strong relationship with Vitruvian. Lorne’s history in the gaming industry and Hydra’s access to the public capital markets are the perfect combination to take Inspired to the next level.
Our ambition with Inspired has always been to build a truly scaled and global leader in gaming technology, which we believe is transitioning rapidly to an all-digital environment. Our visions are aligned, and the Inspired team is looking forward to working with Hydra to drive value through organic and strategic growth.”