FRANKFURT/VIENNA, March 8 The private owners of
Austrian gaming technology group Novomatic are
exploring an initial public offering that could value the
company at more than 6 billion euros ($6.3 billion), three
sources familiar with the matter said.
The listing of the maker of gaming equipment and casino
management systems would most likely take place in London, one
of the people said.
Novomatic's owners last week sent out a renewed request to
banks to pitch for roles in the listing, which could take place
as early as later this year.
Novomatic, owned by the family of its billionaire founder
Johann Graf, had revenues of 3.9 billion euros in 2015. It
reported earnings before interest, tax, depreciation and
amortization of 287 million euros in the first half of last year
and employs around 28,000 people in around 50 countries.
While software and technology focused peers trade at up to
15 times their expected core profit, Novomatic is more likely to
fetch a multiple of roughly 10 times, given that its core
business is less profitable physical gambling machines, the
A sale of a minority stake to a private equity group is also
a possibility that Novomatic's family owners are considering,
they said, adding that Asian gambling groups would also be
likely to show interest in the company.
Gambling and betting companies have attracted private equity
in the past. Last year buyout group CVC bought Germany's sport
betting group Tipico.
"We have been active with bonds in the capital market for
many years and evaluate different financing options on the
capital market. There are currently no concrete decisions
regarding other financing projects," a Novomatic spokesman said.
Bloomberg earlier on Wednesday reported that the company is
considering a stock market listing.
($1 = 0.9485 euros)
(Reporting By Arno Schuetze; Additional reporting by Shadia
Nasralla; Editing by Susan Fenton)