Vitruvian exits Inspired Gaming to US buyer in £200m deal

The transaction will include around $100m in cash with the remainder paid in Hydra shares, valued at $10 apiece.

Upon completion of the sale, Vitruvian will retain a 35% stake in the business. Hydra CEO Lorne Weil will take on the role of executive vice-chair of Inspired, while founder and CEO Luke Alvarez will continue in his role as CEO and take a seat on the board.

Hydra, which will rebrand as Inspired Entertainment, will use the business as a platform to make bolt-on acquisitions on an international basis.

Vitruvian previously generated a return on its investment in Inspired when it partially exited the business through the sale of its amusements and gaming division to Palatine Private Equity in February 2013.

Previous funding
Vitruvian acquired Inspired Gaming in a £134m take-private deal in May 2010.

Company
Founded in 1998 and headquartered in London, Inspired Gaming produces digital gambling games and related video terminals for use in casinos, bars and entertainment centres. The business anticipates a turnover of $110m with EBITDA of $38m in the year to September 2016.

People
Vitruvian Partners – Philip Russmeyer (partner).
Inspired Gaming Group – Luke Alvarez (CEO).
Hydra Industries Acquisition Corp – Lorne Weil (CEO).

Advisers
Acquirer – Macquarie Capital (M&A); Kramer Levin Naftalis & Frankel (legal); Mishcon de Reya (legal).
Company – Morgan Stanley (M&A); Dickson Minto WS (legal); Willkie Farr & Gallagher (legal).
Management – Pinsent Masons (legal); Proskauer Rose (corporate finance).

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• Topics
• Exits
• UK / Ireland
• Consumer
• United Kingdom
• Vitruvian Partners