Ainsworth buys a US pokie machine manufacturer and its shares tank

Joe Raedle/Getty Images

Australian gaming company Ainsworth Game Technology is paying $US38 million ($A54m) for Nova Technologies, a private US-based pokie machine builder.

The acquisition gives Ainsworth, founded by gaming industry pioneer Len Ainsworth, a bigger footprint in the US, doubling the existing number of machines to 2,600.

Ainsworth’s share fell hard on the news, dropping 9% to $2.82.

Nova has been building gaming machines for more than a decade and has 30 types at more than 1,300 sites across the US.

CEO Danny Gladstone says the purchase demonstrates the company’s focus on growth in the North American market.

“This deal represents a complementary extension of available product to the direct benefit of AGI’s (Ainsworth Game Technology) current customer base across the Americas,” he says.

He says the company has credit approval for a $A90 million secured facility with the ANZ bank to fund the acquisition of Nova.

Ainsworth reported net profit of $70 million in 2015, up from $62 million.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.