Novomatic sets sights on Mexico with OtiumGI investment

Novomatic sets sights on Mexico with OtiumGI investment

Monday, September 26, 2016 Posted by Andy McCarron
The company hopes to introduce new product to Mexican market

Novomatic’s big corporate reveal ahead of this week’s G2E expo taking place in Las Vegas has seen the company unveil a 60% stake in Spanish video-bingo company OtiumGI for an undisclosed sum.

The deal for the Barcelona-based business will see OtiumGI turn its attentions to the Mexican market where it hopes to introduce a state-of-the-art bingo slot offering via a local subsidiary.

The 60% stake also represents a further expansion of Austria-based Novomatic’s product portfolio. The move comes a matter of days after the company announced the launch of a €500m corporate bond offer with the stated intention of using some of the proceeds to fund future acquisitions.

The deal with OtiumGI is expected to have an instant impact on the Mexican market and will see OtiumGI benefit from a number of synergies as it looks to leverage Novomatic’s presence in many international gaming markets.

Lawrence Levy, senior vice-president for Central and South America, at the Novomatic Gaming Industries unit, said: “We are delighted to announce this acquisition that has the potential to establish an excellent position for Novomatic in the Mexican bingo segment and beyond.”

He added: “It further broadens our highly-diversified product offer for the region and perfectly correlates with the group’s ongoing commitment and strategic expansion in the Latin American markets.”

Santiago López de Lamadrid, the chief technology officer at OtiumGI, said: “After gaining much experience over the last few years in Mexican and Filipino markets with our video bingo products, we believe that Novomatic is the perfect partner to build our brand, with the intention of becoming an industry benchmark.”

The Novomatic bond offer earlier this month was over-subscribed. As well as being used for potential M&A, the money will also be utilized for general corporate purposes and to optimize its capital structure.

Part of the bond proceeds will also go toward completing the acquisition of the Ainsworth Game Technology business bought for A$473.3m in February this year. Alongside its footprint in the Australasian market and North America, Ainsworth also has a presence in South America.

Totally Gaming says: The news on the deal for the stake in OtiumGI shows that Novomatic isn’t slowing down on its plans to broaden and deepen its global footprint. As mentioned last week when we wrote about the €500m corporate bond, the company now has money in the bank and we wouldn’t be surprised if more deals were to be forthcoming in the months ahead.

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