Ainsworth to Acquire Nova Technologies
Australian casino poker machine manufacturer, Ainsworth Game Technology Ltd has signed an acquisition deal with US-based manufacturer of Class II gaming machines, Nova Technologies LLC. Ainsworth will acquire 100 percent equity in Nova at a cost of US$38 million (AU$54 million).
Nova has been manufacturing gaming machines for more than a decade and currently has more than 30 proven Class II types with more than 1,300 units across the United States. This acquisition will double Ainsworth’s number of machines to 2,600 and significantly increase the size of their footprint across America.
According to Danny Gladstone, CEO at Ainsworth, this acquisition is a noteworthy step towards the company’s goal of increasing their presence in the North American gaming market.
“The transaction allows us to enter Class II gaming in an immediate and significant manner,” stated Gladstone. “This deal represents a complementary extension of available product to the direct benefit of Ainsworth’s current customer base across the Americas.”
Ainsworth’s chairman, Len Ainsworth added, “We have been disciplined and highly selective in our acquisitive growth strategy and we are now excited to have an excellent platform that we can substantially grow and develop over time.”
The company has received credit approval from the Australian and New Zealand (ANZ) banking group for a AU$90 million secured loan. This will replace the AU$30 million unsecured loan that the company used to fund the acquisition of Nova.
According to Ainsworth, they hope to close the deal in early 2016, “subject to all necessary regulatory approvals.”
In addition, Ainsworth has announced its intention to appoint Heather Scheibenstock as an independent non-executive director on its board from mid-January. Ms Scheibenstock will come to Ainsworth from Solaire Resort and Casino in the Philippines where she was senior vice president of table games.
April 16, 2017