CVC has invested in Gaming Laboratories International (GLI) via a strategic partnership that the pair said will “support GLI’s continued growth and long-term development”.
The investment from the private equity behemoth comes via its long-duration investment platform, Strategic Opportunities. The funding has already been deployed.
The Strategic Opportunities fund has €15bn in assets under management (AUM) spread across 18 active investments in the portfolio.
Companies in the portfolio include UK car insurance and breakdown firm RAC and Dream Games, the publisher behind the hugely popular Royal Match title.
“CVC’s Strategic Opportunities has a core focus on corporate private equity investments with a lower risk profile, primarily in Europe and North America, as well as the opportunity to partner with founding families or foundations looking for a long-term partner,” per the CVC website.
The funding will provide resources to improve the growth potential of GLI while “upholding the company’s history and culture of providing world-class services to the global gaming industry”, it adds.
Headquartered in Lakewood, New Jersey, GLI has more than 1,500 employees across the globe and services more than 710 regulated gaming jurisdictions.
Reports last summer suggested CVC was in the process of acquiring GLI.
A pair of antitrust filings in Austria and Malta said a CVC-linked entity, Avalon Buyer Limited, was set to snap up GLI.
The size of the CVC investment, and if it has taken a shareholding in GLI, was not disclosed.
GLI has offices across Europe, North America, Latam, Africa, Asia and Australia. The testing giant was established in 1989 by James Maida and Paul Magno.
Maida serves as CEO and president, while Mango holds the position of executive vice-president.
BMM Testlabs became the first North America-based testing giant to be taken over by a private equity organisation last March when the Visualize Group snapped it up.
Maida said: “We are truly excited and honoured to welcome CVC as a strategic investment partner. CVC shares our vision, values and long-term commitment to the global gaming industry.
“This partnership creates new opportunities for growth and innovation, allowing GLI to invest even more in the success of the future of the global gaming industry as well as investing in related and adjacent sectors.
“Our leadership, values and culture focused on customer service remain unchanged. I will continue as CEO and our leadership team remains intact.
“Together we will stay focused on quality, speed and the customer experience while continuing to drive innovation and outstanding service worldwide.”
Matt Turner, partner at CVC and GLI board member, added: “Within CVC Strategic Opportunities, we seek to partner with exceptional businesses that have histories of consistent success, strong market positions and significant long-term growth potential.
“GLI fits perfectly with that approach, as over nearly 40 years James and Paul have built GLI into the clear leader in its industry.
“The company plays a critical role in the global regulated gaming ecosystem and has established itself as a trusted partner to regulators, operators and suppliers around the world.
“This positions the business extremely well for continued growth, and we are looking forward to working alongside James and the talented team at GLI to support the company’s future success.”
Private equity involvement in igaming has increased in recent years as part of the wider trend towards consolidation in the industry.
In October, Betclic parent company Banijay Group signed a binding agreement with CVC to acquire a majority stake in German operator Tipico Group, creating a combined company generating an estimated €3bn in yearly revenue.
Almost two years ago, private equity giants Apollo Global Management acquired Everi and IGT’s Gaming and Digital arm for around $6.3bn.
The post GLI announces CVC as its first external investor first appeared on EGR Intel.
Private equity giant pledges to help scale the testing and certification firm while “upholding the company’s history and culture of providing world-class services to the global gaming industry”
The post GLI announces CVC as its first external investor first appeared on EGR Intel.