Novomatic Buys 52% of Ainsworth Gaming Technology (AGT)
Austrian gaming machine manufacturer Novomatic bought Ainsworth Gaming Technology (AGT) this week. Novomatic bought a controlling 52% stake of AGT, giving Novomatic a controlling stake in the Australian poker machine (slot machine) manufacturer.
Besides Aristocrat Leisure and IGT, Ainsworth is the largest Australian electronic gaming machine makers. Ainsworth also has operations in the United States tribal casino market, after buying Nova Technologies on 2015. Novomatic bought UK-facing Talarius, a subdivision of Tatts Group, in 2016 – a move that many believed was a stepping stone towards the purchase of Ainsworth.
Novomatic is the biggest Austrian gambling company, with key offices in Vienna and London. Novomatic produces slot machines for many Eastern European casinos under its Admiral brand. Novomatic sells slots and video lottery terminals (VLTs) throughout Western Europe, North America, and South America, while also having a significant presence in the online gambling industry. Evolution Live is a Novomatic product.
Ainsworth Gaming Technology
Ainsworth Gaming Technology Ltd was founded in the 1990s by legendary Australian gaming machine executive Len Ainsworth. Len Ainsworth founded Aristocrat Leisure in the 1950s, but stepped away from the company in the 1990s when doctors told him he had terminal cancer. A year after handing Aristocrat to his children, Len Ainsworth recovered and launched Ainsworth Gaming Technology (AGT), which became a main rival to his kids’ company. Ainsworth died in the 2000s.
Ainsworth is listed on the Australian stock exchange. The company’s headquarters are located in Newington, Sydney and have operations worldwide. Ainsworth Gaming Technology is a leading manufacturer and supplier for superior gaming solutions in not only Australia but in both North and South America as well.
Novomatic: Austrian Gaming Group
The Austria-based Novomatic Group is one of the largest casinos operators in Europe, while its online gambling footprint has grown over the past 2 decades with acquisition of a number of game developers.
Novomatic was founded in 1980 by entrepreneur Professor Johann F. Graf. The company today employs over 24,000 staff throughout the world in over 50 countries. The Vienna-based company exports high-tech electronic gaming equipment and gaming solutions to over 80 different countries. Novomatic owns and operates 235,000 gaming terminals in more than 1,600 gaming operations worldwide.
In the online gambling industry, Novomatic owns brands like Greentube, Stakelogic, and Astra Gaming. Novo Gaming is part of its land-based gaming operations. Novomatic’s live casino software is Extreme Live Gaming – the world’s best live dealer casino brand — which services award-winning sites like Leo Vegas, BetVictor, and Mr Green.
Novomatic Buys Ainsworth
The deal between the two companies will be finalized on January 5, 2018. Several different gaming board’s approvals were required for the transaction to be completed, including Australia, the United States, many European countries, and several South American nations.
Novomatic had to pass comprehensive compliance checks, both for the company itself, along with its many significant owners, Supervisory Board and Executive Board members.
Harald Neumann, Chairman of Novomatic’s executive board, said of the buyout, “Novomatic is now one of the few internationally active companies to have passed strict compliance checks from these international authorities. For this reason, a variety of independent licensing boards have said the deal can go ahead.”
Novomatic’s Global Gaming Corporation
Novomatic is now registered with the Nevada Gaming Control Board in Nevada, US. They have a very strict testing process in order to register but not only were they successful they are now the first and only Austrian company to register in gaming hot spot, Las Vegas.
Harald Neumann added, “The compliance tests carried out as part of this registration were extremely thorough. They included all corporate divisions of Novomatic AG.”
But that isn’t the only first for the Novomatic company. The shares that were purchased for over EUR 300 mi makes for the largest ever investment made by an Austrian company in Australia. The company chairman said, “Our shares in Ainsworth are strategically very important for Novomatic.”
Novomatic’s Presence in the US and Australia
The Ainsworth deal puts Novomatic in a strong position in Australia, where Len Ainsworth (or Aristocrat fame) founded Ainsworth Gaming Technology (AGT). The purchase should increase Novomatic’s presence in the US gaming market, as its share of the slot machine market should increase to roughly 10% over the next 5 years.
When the deal was first discussed, Harald Neumann said, “Through the planned share acquisition of AGT, one of the leading gaming companies in Australasia and the USA, we will increase our market share in those regions and continue to follow our international growth strategy. The transfer of know-how, contents, and high-tech gaming equipment will create a natural synergy that will help expand our presence in the worldwide gaming market.”