Astra announced Danoptra deal completion

The conclusion of this transaction, which began with initial discussions back in 2009, now creates an Astra UK Gaming Group that, based on 2011 reported figures, has a total turnover of us$ 124.9 million and us$ 24.6 million EBITDA (earnings before interest, taxation, depreciation and amortisation) and employs a total workforce of 1,042. Throughout the lengthy period of discussion and negotiation Astra Games was ably represented by Aled Walters, partner in Cardiff legal practice MLM Cartwright.

Each of the four ‘acquired’ companies will maintain their individual identities – being some of the most respected and iconic names in the UK gaming industry – and will conduct themselves with their existing staff and in a ‘business as normal’ manner.

The Astra UK Gaming Group will be managed by a five man Board of Directors. Zane
Mersich, Managing Director of Astra Games since 2008, will become the Group’s CEO and will be joined by John Austin (Managing Director, Bell-Fruit Games), Chris Butler (Managing Director of Gamestec), Neil Paramore (CFO) and Paul Terroni, who moves from Danoptra to take up the role of Business Development Director within the new entity.

Now backed by the huge resources of the Novomatic Group a Technology Committee covering all aspects of the Astra UK Gaming Group will be established. To be chaired by Astra’s Game Design Director and Board member Andy Dinning, this committee will be responsible for directing new innovations in both analogue and digital gaming products and creating an overall policy of strategic research and development across all companies within the group.

The oft submission process
As a wholly owned subsidiary of the Novomatic Group Astra Games has progressed this transaction in full accordance with Group policy. This meant a full compliance with all relevant legal requirements, together with a full and complete due diligence process and, because of the significance of the proposed transaction to the wider UK gaming industry, a voluntary submission being made to the UK Office of Fair Trading.

Astra’s voluntary OFT submission was made on 17th April, 2012 and was open to written representations on any competition or public interest issues, a process that Astra Games both welcomed and supported. One area of intense discussion has been the UK gaming industry’s wish to see Astra continue to develop, manufacture and support analogue gaming machines.

Astra has frequently repeated its total commitment to the future development of both analogue and digital gaming equipment for the continued benefit of the UK industry and reinforces that commitment now.

Welcoming the OFT’s statement of clearance on July 3rd Zane Mersich, Managing Director of Astra Games, noted: “All of us involved in the process of bringing together Astra and Danoptra understand the importance, for the wider UK gaming industry as well as just the parties directly involved, of a deal that will now safeguard iconic industry names and the employment that they provide. We look forward now with great confidence and in the belief that the group of companies that we have created under the Astra banner will, from the outset, play a leading role in the development of the UK gaming industry.”

Astra Games (based in Bridgend, South Wales) is the wholly owned subsidiary of
Austrian Novomatic Group, that was founded in 1980 and which today employs more than 18,000 staff around the world and is the leading European producer of high-tech gaming equipment.

Astra itself was founded in 1992 by a group of gaming industry entrepreneurs from within the gaming industry enclave that still exists to this day in South Wales. In the autumn of 2004 the Bridgend-based company consolidated its position as a major force in the international gaming industry by becoming a subsidiary of the world-renowned Novomatic Group of Companies. From the start, Astra has continually broken new ground in gaming machine design. The company pioneered the multiplayer concept, followed by sit-down multi-players and video multiplayer products. And despite being much imitated, Astra machines remain market leaders.

Zane Mersich, CEO, continued: “To understand and appreciate the significance of the Astra UK Gaming Group one needs look no further than the recent history of Astra itself. When Novomatic acquired a majority shareholding in Astra back in 2004 it was against a background of promised investment and resources deployment. On 29th November 2007
Astra opened its new headquarters facility, Astra House, and moved into an entire new phase of groundbreaking innovation. With the acquisition of the Austrian internet gaming pioneer company Greentube in 2010 Astra provided what is now the third ‘leg’ of the Novomatic business: adding online gaming entertainment to Novomatic’s previous strategy of duality in manufacturing and land-based operations.

In the spring of 2011 Astra added to its portfolio a majority shareholding in Empire Games, a respected name in the UK gaming industry but a company that was starved of investment. All of these companies, not the least of which is Astra itself, have been able to grow and develop thanks to the investments made by Novomatic in finance, technology, organisation and secured management. Without doubt, this will now be mirrored in the development of Bell-Fruit Games, Gamestec, RLMS Sales and Mazooma Interactive Games.

My personal satisfaction at the conclusion of this deal is that we have grown Astra by a well considered acquisition and, in the process, have secured over 1,000 UK jobs and given some of the most iconic company names in the UK gaming entertainment industry their chance to shine once again. I look forward to the future with excitement and anticipation and I hope and believe that the many stakeholders in what has been a industry hard pressed of late by economic circumstance will see the opportunity to move forward in partnership with us towards a brighter, sustainable, future.”

Franz Wohlfahrt, CEO Novomatic AG added: "Following the take-over of Astra Games in 2004 and Empire Games in 2011 this major acquisition in the UK brings to our group a true domestic market in the gaming industry's home country. We are convinced that the synergies generated through the cooperation of the various companies will not only secure jobs but will also provide important impetus for our global growth as a group as well as for our business strategy that is traditionally based on the duality of business activities as a producer and as an operator."