Ainsworth Game Technology, an Australian gaming device maker, is exploring the possibility of going private and delisting its shares from the Australia Stock Exchange (ASX). The company has disclosed that it has hired Macquarie Capital to help with the process, which is still in the early stages.
The decision to go private is part of Ainsworth’s strategic review to maximize shareholder value. The company stated that it is considering a wide range of potential alternatives, both organic and inorganic, but there is no guarantee that any transaction will result from this review. Ainsworth also confirmed that it has not yet received any inquiries from other companies about taking it private.
The company remains committed to its long-term growth strategy, which includes investments in research and development. Analysts believe that the slot machine industry is ripe for consolidation, and Ainsworth could be a part of that trend. Industry experts point to the resilience of casino visits and easing supply chain pressures as positive factors for gaming device manufacturers.
Ainsworth’s presence in North America, including its expanding research and development operations in Las Vegas, as well as new studios in Texas and Mexico, makes it an attractive acquisition target. The company’s strong performance in the North American market, coupled with revenue increases in Asia and New Zealand, has offset some weakness in its home market.
Speculation surrounding potential suitors for Ainsworth centers on Australia-based gaming machine manufacturer Novomatic, which acquired a majority stake in Ainsworth in 2018. Furthermore, Ainsworth’s CEO previously worked for Novomatic. Other major investors in Ainsworth include Spheria Asset Management, Allan Gray, REST, and HESTA, but their stance on the company going private is not yet known.