Inspired Gaming MBO is our Deal of the Month
INSPIRED Gaming Group’s management buyout (MBO) backed by Palatine Private Equity is TheBusinessDesk.com’s Deal of the Month for February.
The deal relates to the Burton, Birmingham and London firm’s amusement and leisure division, which will now become known as Playnation.
Advisers from KPMG, Deloitte, Clearwater Corporate Finance and Gateley 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.”
Explaining the reasoning behind this month’s Deal of the Month choice, TheBusinessDesk.com editor Andy Coyne said: “Private equity isn’t for every business. Some companies prefer to take things at their own speed and grow via debt funding.
“Pure debt funding isn’t always readily available in the current climate, however, and for businesses that have a fast-growth plan and are happy to bring in outside expertise for a slice of the business, private equity can be the right option.
“The combination of a highly motivated management team and Palatine’s expertise in growing businesses make this a very exciting proposition.
“And the fact that so many local advisers were involved in the transaction once again pays testament to the dealmaking expertise we have here in the Midlands.”
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 provided financial and tax due diligence and tax structuring advice to Palatine.
The acquisition finance team at Lloyds Bank in the Midlands provided senior debt, cap-ex and revolving credit facilities to support Palatine.
Dickson Minto WS provided legal advice to Inspired Gaming, while law firm Gateley advised Palatine Private Equity on legal aspects of the transaction.
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.”
