Inspired Entertainment has agreed to sell its UK holiday parks business and associated leisure assets to Japanese entertainment group GENDA Inc. for approximately £18.6m in cash.
The transaction covers Indigo NewCo Limited, which includes the operation of more than 11,000 amusement and gaming machines across about 170 family entertainment centres and adult gaming centres in UK holiday parks and other venues.
The sale remains subject to regulatory approval and is expected to close in the fourth quarter of 2025.
As part of the agreement, Inspired will still offer Indigo NewCo Limited its gaming content and platform services on a recurring revenue basis.
Executive chairman Lorne Weil explained: “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.”
He emphasised that the divestiture allows Inspired to streamline its operations, improve EBITDA margins, and create a more agile business structure with greater flexibility in capital allocation.
The UK leisure business being sold is currently part of Inspired’s Leisure segment, which the company has been restructuring for over a year.
Inspired had previously set a goal of achieving EBITDA margins above 40% through operational improvements and asset sales.
In the first half of 2025, the company recorded restructuring charges, signalling that its efficiency measures were underway.
A step forward for Inspired
Citizens analyst Jordan Bender noted that the company now appears on track to meet its margin targets, with projections showing an estimated 42% margin by 2026.
Bender said management has indicated that further restructuring actions could bolster margins in upcoming quarters.
His updated model incorporates around $2m in operational improvements and forecasts $110m in EBITDA, supported by 7% same-store growth.
He added that debt reduction remains a priority for Inspired, as lowering leverage will also reduce borrowing costs under the company’s new financing structure.
As a result, Citizens believes Inspired can push its cash holdings to $82m by the end of next year, up from $46m in the second quarter of this year.9
Market reaction has been cautiously positive. Inspired’s shares closed at $9.14 on Wednesday (27 August), although Bender has reiterated his previous price target of $12.
The sale proceeds are expected to primarily go toward debt repayment, a step he see as crucial to strengthening the company’s balance sheet.
If executed as planned, the restructuring could position Inspired with a leaner structure and a stronger foundation for long-term shareholder value creation.
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