Novomatic Casino has successfully bought over Playnation this week in an attempt to carve another foothold in their UK operations.
They've been chipping away at the UK market, trying to find a way to firm up their grip and increase their market share for many months. This Austrian company may have cracked it this time with this acquisition of an established brand, Playnation.
Playnation is a provider of physical gaming in sites around the county, boasting over 20,000 machines in nearly 2,000 locations. The company did suffer a buy out a few years ago as it was struggling on the market but whether Novomatic can keep this brand on the road to success is still in question.
Novomatic is primarily associated with casinos but this new deal will see them snapping up more amusement machines than ever. They'll have claw machines, skill games and cranes in leisure locations such as bars and waiting rooms.
The future is uncertain for Playnation's 800 employees as the new management may find some roles unnecessary. They could find it prudent to cut company costs and tighten their belts to increase their profit, as physical gaming proves less popular than online casinos.
The CEO of Playnation will stay with the company though, as he helps Novomatic in their mission for success on the British market. He commented on the acquisition and said that the companies were ideal partners as they hold the same beliefs and missions. He also went on to say that the Novomatic name had positive connotations for people worldwide due to their commitment to excellence in all aspects of their business.
Current CEO of Novomatic UK, Zane Mersich, was also pleased with the deal and the potential outcomes that it would unlock for both brands. He praised the company and agreed that the new group would work well as a whole to enhance their operations in the United Kingdom. He continued by saying that this additional brand would help them test the waters in the area and strategize on the best ways to caters for players in the country.
This bold move comes after a record breaking first half of the year for Novomatic in terms of turnover. They've increased their employee ranks by 600 people and have reported an increase of 5% to their turnover so far. The sum that they paid for Playnation was not disclosed but this could be a sizeable chunk of their profits for the year, shareholders will be watching anxiously to see if the investment will be a good one or if it may be something that will lead to a loss in the second part of the year.
Novomatic likes to maintain a good public image and it has also taken on a celebrity spokesperson, Niki Lauda, a former national champion for Austria. He won the Formula 1 World Championship three times and has now leant his image and passion to Novomatic. This 66 year old celebrity has smashed world records and is a legend in the casino operator's home country.
