Gaming machine manufacturer Ainsworth Game Technology (ATG) has advised its shareholders to approve Novomatic’s enhanced takeover bid, calling the offer “fair and reasonable.” In a recent announcement to the Australian Securities Exchange, the company emphasized the benefits of accepting the proposal.
Novomatic, an established player in the gaming industry, has revisited its acquisition strategy with an improved bid to secure the remaining shares in ATG, where it already holds a majority stake of 58.8%. The initial offer was met with resistance from key investors, including the founder’s son, who argued that it undervalued the company. This pushback led Novomatic to present a more attractive offer, placing AUD 1 million per ATG share, valuing the deal at AUD 158.6 million, or approximately $104 million. Novomatic has been clear in stating that this is their best and final offer.
The ATG board, having carefully reviewed the proposal, has come out in support of it. They have advised shareholders to vote in favor, provided an independent expert continues to find the offer fair and reasonable. Their statement, released on September 15, emphasized the unanimous recommendation by the Independent Board Committee of Ainsworth for shareholders, excluding Novomatic, to accept the offer unless a superior proposal arises.
For shareholders hesitant about the bid, ATG suggested taking no immediate action. They also recommended that those uncertain should seek independent advice to understand the implications based on personal risk profiles and investment strategies. Daniel Gladstone, the chair of ATG’s Independent Board Committee, suggested that shareholders carefully weigh the offer against their own financial circumstances before deciding.
In anticipation of shareholder approval, ATG has already taken procedural steps, sending the Target’s Statement to Novomatic and filing it with the Australian Securities and Investments Commission on September 15. They plan to distribute the statement to shareholders by September 17, aiming to finalize the acquisition by November 3, 2025.
The gaming industry has been closely observing this development, given the strategic importance of such acquisitions in an increasingly competitive market. Novomatic’s decision to enhance its offer underscores the value it sees in ATG, particularly its robust portfolio and market presence. The acquisition would consolidate Novomatic’s position in the market, providing a stronger foothold in the Asia-Pacific region, which has become an increasingly lucrative market for gaming technologies.
However, opinions are divided among industry analysts. Some see the acquisition as a natural progression for both companies, allowing ATG to benefit from Novomatic’s extensive resources and global reach. “For ATG, joining forces with a giant like Novomatic could mean more opportunities for innovation and expansion,” they note.
On the other hand, there are concerns about the implications of such a merger, especially regarding market competition and consolidation. Critics argue that too much consolidation could stifle innovation and limit choices for operators. They are wary of the potential for monopolistic behavior that might arise from such powerful alliances.
Nonetheless, the current market environment favors big players with the means to invest in cutting-edge technology and compliance with evolving regulatory standards. As such, mergers and acquisitions have become a common strategy for growth and sustainability in the gaming industry.
The broader economic landscape also influences these decisions. With fluctuating market conditions and mounting regulatory pressures, companies are increasingly looking at consolidation as a way to maintain stability and continue delivering value to shareholders. In this context, the ATG-Novomatic deal aligns with a trend toward strategic partnerships aimed at achieving long-term success.
As the November deadline approaches, all eyes remain on how ATG shareholders will respond to the proposal. Will they align with ATG’s board and accept Novomatic’s final offer, or will they hold out for a potentially better proposal? The outcome will likely have significant implications not just for the two companies involved, but for the entire gaming industry, setting a precedent for how similar deals may be approached in the future.
Garry Sputnim is a seasoned journalist and storyteller with over a decade of experience in the trenches of global news. With a keen eye for uncovering stories that resonate, Alex has reported from over 30 countries, bringing light to untold narratives and the human faces behind the headlines. Specializing in investigative journalism, Garry has a knack for technology and social justice issues, weaving compelling narratives that bridge tech and humanity. Outside the newsroom, Garry is an avid rock climber and podcast host, exploring stories of resilience and innovation.
