Inspired Announces Proposed Sale of UK Holiday Parks Business to GENDA Inc.

Rhea-AI Summary

Inspired Entertainment (NASDAQ: INSE) has announced a definitive agreement to sell its UK holiday parks business to GENDA Inc. (TSE:9166) for approximately £18.6 million ($25.1 million) in cash. The sale includes Indigo NewCo Limited, which operates over 11,000 amusement and gaming machines across 170 family entertainment centers throughout the UK.

The strategic transaction, expected to close in Q4 2025, aligns with Inspired's evolution toward a more digital and scalable business model. The company will continue providing gaming content and platform services to Indigo NewCo Limited on a recurring revenue basis. Net proceeds will be primarily used for debt reduction.

Positive

• Strategic shift towards higher-margin digital business model
• Expected improvement in company-wide EBITDA margin
• Transition to more agile, less capital-intensive structure
• Maintains recurring revenue through continued content and platform services
• Debt reduction from sale proceeds will strengthen balance sheet

Negative

• Divestment of substantial physical gaming asset portfolio
• Reduction in operational scale and market presence in UK leisure segment

Insights

Corporate Strategy Analyst

Inspired's sale of UK holiday parks for $25.1M aligns with strategic shift toward digital, scalable, higher-margin business model while reducing debt.

Inspired Entertainment's decision to divest its UK holiday parks business for $25.1 million represents a calculated strategic repositioning rather than a simple asset sale. This transaction specifically targets three key business objectives:

First, the company is deliberately shifting its business mix toward digital operations. The holiday parks business, with 11,000+ amusement machines across 170 physical locations, represents a traditional, asset-heavy operation. By divesting these operations while maintaining a relationship to provide digital gaming content and platform services, Inspired transforms from an operator of physical assets to a technology/content provider with recurring revenue streams.

Second, this transaction improves Inspired's financial profile in multiple dimensions. The higher EBITDA margin mentioned by management signals that the divested business likely operated at lower margins than the company average. Meanwhile, using proceeds primarily for debt reduction strengthens the balance sheet while the new service agreement creates a more predictable revenue stream without the capital intensity of physical operations.

Third, this move creates a more agile operational structure. By reducing labor-intensive physical operations, management gains greater flexibility in capital allocation and can potentially accelerate investment in higher-growth digital initiatives. The transaction essentially trades short-term revenue for improved profitability metrics, operational efficiency, and strategic focus.

This strategic pivot follows industry trends where gaming companies increasingly prioritize scalable digital content delivery over capital-intensive physical operations, positioning Inspired for potentially stronger competitive positioning in digital gaming markets.

NEW YORK, Aug. 27, 2025 (GLOBE NEWSWIRE) -- Inspired Entertainment, Inc. (“Inspired” or the “Company”) (NASDAQ: INSE), a leading B2B provider of gaming content, technology, hardware, and services, today announced that it has entered into a definitive agreement with GENDA Inc. (“GENDA,” TSE:9166), a global entertainment company, relating to the sale of Inspired’s UK holiday parks business and certain associated leisure assets (“Indigo NewCo Limited”) for total consideration of approximately £18.6 million ($25.1 million¹) in cash, subject to customary adjustments and closing conditions. In addition, Inspired will provide gaming content and platform services on a recurring revenue basis to Indigo NewCo Limited.

Lorne Weil, Executive Chairman of Inspired, said: “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, which offers stronger long-term growth potential and a higher margin profile. The sale of the holiday parks business helps to further align our portfolio, increasing our digital EBITDA mix and improving our company-wide EBITDA margin. It also streamlines our operations, moving us towards a more agile, less capital and labor intensive structure with increased flexibility in capital allocation. Overall, it aligns with our strategy and our focus on building value sustainably over time.”

The sale agreement relates to Inspired’s business of operating and managing more than 11,000 amusement and gaming machines across approximately 170 family entertainment centers and adult gaming centers located within holiday parks and other entertainment venues throughout the UK. This business is currently reported in Inspired’s Leisure segment.

The transaction is anticipated to close in the fourth quarter of 2025, subject to required regulatory approvals and other customary closing conditions. Net proceeds of the sale will primarily be used to pay down debt.

Global Leisure Partners served as the exclusive financial advisor to Inspired and Brown Gibbons Lang & Company served as the exclusive financial advisor to GENDA. Hugh James served as legal advisor to Inspired and Hill Dickinson served as legal advisor to GENDA.

(1) USD equivalent based on an exchange rate of 1.35 GBP/USD as of August 26, 2025; actual amount will vary with exchange rates at closing.

About Inspired Entertainment, Inc.

Inspired offers an expanding portfolio of content, technology, hardware and services for regulated gaming, betting, lottery, social and leisure operators across land-based and mobile channels around the world. Inspired’s gaming, virtual sports, interactive and leisure products appeal to a wide variety of players, creating new opportunities for operators to grow their revenue. Inspired operates in approximately 35 jurisdictions worldwide, supplying gaming systems with associated terminals and content for approximately 50,000 gaming machines located in betting shops, pubs, gaming halls and other route operations; virtual sports products through more than 32,000 retail venues and various online websites; digital games for 170+ websites; and a variety of amusement entertainment solutions with a total installed base of more than 16,000 terminals.

Additional information can be found at www.inseinc.com.

About GENDA

“More fun for your days”

To realize this Aspiration, GENDA is an entertainment company that aims to build a global entertainment network and increase the “total amount of fun” distributed throughout the world. GENDA operate a wide range of businesses in entertainment, including Amusement, Karaoke, Character Merchandising, Food & Beverage and Contents & Promotions (movies, interactive contents, etc.). GENDA operates approximately 1,000 amusement arcades such as “GiGO” and the karaoke chain “Karaoke BanBan” in Japan and abroad, as well as approximately 14,000 mini-locations (mainly a gaming corner with 30 or less game machines installed). GENDA operates in Japan, the United States, mainland China, Hong Kong, Taiwan, the United Kingdom, Vietnam, the Netherlands and Canada.

Company name: GENDA Inc.
Representative: Representative Director, President and CEO Nao Kataoka
Established: May 2018
Location: 6F Tokyo Shiodome Building, 1-9-1 Higashi-Shinbashi, Minato-ku, Tokyo
Web site: https://genda.jp/en
GENDA IR page: https://genda.jp/en/ir

Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “anticipate,” “believe,” “expect,” “estimate,” “plan,” “will,” “would” and “project” and other similar expressions that indicate future events or trends or are not statements of historical matters. These statements are based on Inspired’s management’s current expectations and beliefs, as well as a number of assumptions concerning future events.

Forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside of Inspired’s control and all of which could cause actual results to differ materially from the results discussed in the forward-looking statements. Accordingly, forward-looking statements should not be relied upon as representing Inspired’s views as of any subsequent date and Inspired does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as required by law. You are advised to review carefully the “Risk Factors” section of Inspired’s annual report on Form 10-K for the fiscal year ended December 31, 2024, and in subsequent quarterly reports on Form 10-Q, which are available, free of charge, on the U.S. Securities and Exchange Commission’s website at www.sec.gov and on Inspired’s website at www.inseinc.com.

Contact:
For Investors
IR@inseinc.com
+1 646 620-6737

For Press and Sales
inspiredsales@inseinc.com

FAQ

What is the value of Inspired Entertainment's UK holiday parks business sale to GENDA?

Inspired Entertainment (NASDAQ: INSE) is selling its UK holiday parks business to GENDA for £18.6 million ($25.1 million) in cash, subject to customary adjustments and closing conditions.

How many gaming machines and locations are included in INSE's UK holiday parks sale?

The sale includes over 11,000 amusement and gaming machines across approximately 170 family entertainment centers and adult gaming centers located within UK holiday parks and entertainment venues.

When will Inspired Entertainment's sale to GENDA close?

The transaction is expected to close in the fourth quarter of 2025, subject to required regulatory approvals and other customary closing conditions.

How will Inspired Entertainment use the proceeds from the UK holiday parks sale?

The net proceeds from the sale will primarily be used to pay down debt, improving the company's balance sheet.

Will Inspired Entertainment maintain any business relationship with the sold UK holiday parks?

Yes, Inspired will continue to provide gaming content and platform services on a recurring revenue basis to Indigo NewCo Limited after the sale.