Former Scientific Games chief leads ?200m Inspired Gaming takeover
Lorne Weil's Hydra Industries venture acquires London-based supplier from private equity owners
Former Scientific Games CEO Lorna Weil has led a takeover of Inspired Gaming Group in a deal valuing the supplier at ?200m, it was announced this afternoon.
New York-based Hydra Industries, a recently established gaming-focused acquisition vehicle, has agreed to pay private equity house Vitruvian Partners approximately US$100m up front with the remainder in shares.
The cash will be funded by a $20m private placement from Macquarie Capital and $80m from Hydra’s cash in trust.
Assuming Vitruvian doesn’t cash the shares, the firm would retain a 35% holding in Inspired while it could also receive additional shares depending on Inspired’s future performance.
The deal, which has already been approved by both boards, is expected to close in October 2016, at which point Hydra will be renamed Inspired Entertainment with its NASDAQ ticker changed to INSE.
Hydra CEO Weil will become executive chairman of Inspired Entertainment while Inspired’s founder and current CEO Luke Alvarez will continue in his leadership role as CEO while also becoming a board member.
Weil, who left Scientific Games in 2013 following its buyout of WMS Industries, said Hydra had been on the hunt for a “compelling” business to match its skill set and suggested more deals were likely to follow.
“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,” Weil said.
“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 a number of geographies.
“We believe the combination of Inspired’s management team and our experience in utilising technology and content to drive revenue growth in gaming markets makes us well-positioned to enhance value for our shareholders,” he added.
The transaction marks the second major egaming disposal this year for Vitruvian, which in May completed the sale of sportsbook supplier OpenBet to NYX Gaming for ?270m.