The Inspired Gaming Group has sold its amusement and leisure division to Playnation, a private equity-backed management buy out.

Inspired Inspired

Inspired is planning to invest the proceeds of the sale in the expansion of its gaming technology business internationally. Playnation, meanwhile, is to invest new capital to build its presence in the UK amusement and leisure market.

“This is an important further step in the evolution of Inspired Gaming Group into a pure-play international gaming technology leader,” said Luke Alvarez, CEO and founder of Inspired. “It strengthens Inspired’s balance sheet and enables a sole focus on the fast-growing UK and international SBG, VLT and virtual sports markets.”

As part of the deal, Inspired will supply Playnation with its server-based products under a licence agreement.

Palatine Private Equity has backed the management buyout and has acquired a majority shareholding in the business, which is led by chief executive Adam Hodges.

Playnation supplies holiday parks, motorway services, bowling centres and airports and turnover is expected to reach £31m in 2013.

“This is a really exciting time for Playnation,” said Hodges. “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 are working with us at this transformational time for the business.”