Inspired Gaming amusement arm goes it alone after MBO
INSPIRED Gaming Group has concluded a management buyout (MBO) for an undisclosed sum.
The MBO – backed by Palatine Private Equity – relates to the Burton, Birmingham and London firm’s amusement and leisure division, which will now become known as Playnation.
Advisers from KPMG and Clearwater Corporate Finance in the Midlands were involved in the deal. Lloyds Bank provide debt facilities.
The transaction will see Playnation become a leading supplier of amusement and entertainment machines, supplying holiday parks, motorway services, bowling centres and airports.
Palatine has acquired a majority shareholding in the Playnation business, which is led by chief executive Adam Hodges. Palatine’s managing partner, Gary Tipper and investment director Beth Houghton join the board of the company as non-executive directors. A non-executive chairman will be appointed in due course.
Hodges said: “This is a really exciting time for Playnation. We are all really looking forward to moving the business forward with the help of the investment from Palatine.
“We are well placed for growth, with a fantastic roster of clients. We are pleased Palatine is working with us at this transformational time for the business.”
KPMG led the process on behalf of Inspired Gaming, while Clearwater Corporate Finance advised management and Palatine Private Equity on the transaction.
A team at Deloitte in Birmingham, led by Manchester-based partner Jodi Birkett, provided financial and tax due diligence and tax structuring advice to Palatine.
Neil Meredith, leading the corporate finance team at KPMG, said: “This transaction is indicative of the changes taking place within the mid-market. We are seeing increasing levels of activity as companies such as Inspired Gaming, with strong non-core operations, look to realise value from purchasers who recognise the opportunity to further develop well placed businesses under new ownership.”
The acquisition finance team at Lloyds Bank in the Midlands provided senior debt, cap-ex and revolving credit facilities to support Palatine.
Paul Whitehouse, director at Lloyds Bank, said: “Playnation is well-placed to capitalise on growth opportunities in this resilient leisure sector, given its full-service offering, scalable business model, and continued access, via a license agreement, to Inspired Gaming’s next-generation server-based gaming technology.”
Dickson Minto WS provided legal advice to Inspired Gaming, while law firm Gateley advised Palatine Private Equity on legal aspects of the transaction.
