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NEW YORK - Inspired Entertainment, Inc. (NASDAQ:INSE), a gaming technology company with impressive gross profit margins of 70% and a market capitalization of $237 million, announced Wednesday it has entered into a definitive agreement to sell its UK holiday parks business and certain associated leisure assets to Japanese entertainment company GENDA Inc. (TSE:9166) for approximately £18.6 million ($25.1 million) in cash. According to InvestingPro analysis, the company’s stock is currently trading below its Fair Value.
The transaction involves Inspired’s operations managing over 11,000 amusement and gaming machines across approximately 170 family entertainment centers and adult gaming centers within UK holiday parks and entertainment venues. The business is currently reported in Inspired’s Leisure segment. With a healthy current ratio of 1.69 and last twelve months EBITDA of $84.6 million, the company maintains strong operational efficiency.
As part of the agreement, Inspired will continue to provide gaming content and platform services to the sold business on a recurring revenue basis.
"This transaction is the next step in the ongoing evolution of our strategy as we continue to move toward a more digital and scalable model," said Lorne Weil, Executive Chairman of Inspired, according to the company’s press release.
The sale is expected to close in the fourth quarter of 2025, subject to regulatory approvals and customary closing conditions. Inspired plans to use the net proceeds primarily to reduce debt.
GENDA operates approximately 1,000 amusement arcades in multiple countries and approximately 14,000 mini-locations with gaming machines.
Global Leisure Partners served as financial advisor to Inspired, while Brown Gibbons Lang & Company advised GENDA on the transaction.
Inspired Entertainment provides gaming content, technology, hardware, and services across approximately 35 jurisdictions worldwide, with gaming systems for approximately 50,000 gaming machines in betting shops and gaming halls. Trading at an attractive P/E ratio of 4.07, the company shows promising value metrics. For detailed analysis and additional insights, check out the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
In other recent news, Inspired Entertainment Inc. reported its Q2 2025 earnings, revealing a notable miss on earnings per share (EPS) expectations. The EPS was recorded at -$0.19, which was significantly below the anticipated $0.15, marking a -226.67% deviation. However, the company exceeded revenue forecasts, reporting $80.3 million compared to the expected $75.47 million, a 6.4% increase. In another development, Inspired Entertainment launched V-Play Football Brazil in collaboration with EstrelaBet, a Brazilian gaming company. This virtual sports product is tailored for the Brazilian market and features high-frequency football match simulations. The integration was facilitated through Altenar’s sportsbook platform. These recent developments highlight both the financial challenges and strategic initiatives undertaken by Inspired Entertainment.
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