Palatine Private Equity sells Playnation stake to Austrian gaming giant

Palatine Private Equity has sold its stake in Playnation, a Runcorn-based supplier of amusement and entertainment machines, to gaming giant Novomatic Group.

Playnation, which employs more than 700 people and operates around 20k machines across 1,700 UK sites, will now have access to Novomatic’s global client base, while the Austrian firm will be able to break into new markets through Playnation’s focus on family entertainment machines.

Beth Houghton, Palatine Private Equity’s investment director, said: “Since our investment in Playnation we have seen the business achieve exceptional growth in the family entertainment sector, capitalising on the buoyant market conditions.

“With the business now at a point in its growth cycle where an international buyer can take it onto the next stage, Novomatic is the perfect strategic partner to help achieve Playnation’s long-term objectives.”

Playnation was established two years ago following a management buyout supported by Palatine Private Equity.

Playnation’s CEO, Adam Hodges, said: “Since building the business with Palatine in 2013, we have taken a firm hold of the sector and formed some strong partnerships across the UK with our clients.

“Having a private equity backer has given us the contacts and resources to develop a strong management team, and the potential for future growth is enormous.”

Adam continued: “Novomatic offers us a unique and exciting opportunity to break into new markets and establish the Playnation brand more widely in the coming years.”

Established in 1980, Novomatic is made up of companies operating across 50 countries. Last year the firm, which operates more than 232k gaming machines, reported a turnover of over €3.8bn. While headquartered in Austria, Novomatic has production and research facilities in the UK, Hungary, Poland, Germany and the Czech Republic.

Playnation shareholders were advised by corporate finance company Clearwater International on the deal, while law firm Gateley provided legal advice.

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