Hydra Industries Acquisition Corp. (“Hydra”) (NASDAQ: HDRA), a blank check company which was formed to engage in a merger or acquisition with a target company, announced recently that an agreement has been reached to acquire London-based Inspired Gaming Group, according to PR Newswire.

Including the company’s indebtedness, the transaction reflects a £200 million valuation for Inspired, but excludes transaction expenses and the impact of the company’s sponsor shares and is subject to certain closing adjustments. The equivalent transaction value is $264, based on the current British Pound to US Dollar exchange rate.

Gaming industry veteran and CEO of the Company, A. Lorne Weil founded Hydra, and in its Initial Public Offering on October 29, 2014, raised $80 million. Weil will become executive chairman upon the consummation of the transaction, according to the company. Inspired’s revenue from fiscal year end September 2016 and earnings before interest, tax, depreciation and amortization (EBITDA) are estimated to be $110 million and $38 million, respectively, according to the news release.

In addition to Hydra’s cash in trust, a $20 million private placement from Macquarie Capital will fund the cash component of the acquisition. For their interests in the company, the Seller Group will receive shares of Hydra issued at $10.00 per share and cash available at closing after transaction expenses. Depending on future performance, additional common shares may be received by the Seller Group as further consideration.

It is the intention of Hydra to change its name to Inspired Entertainment, Inc., upon consummation of the acquisition and INSE is the ticker it will trade under on Nasdaq. Luke Alvarez, Inspired’s founder, and current CEO, will maintain his position upon finalization of the transaction.

According to Hydra Industries Acquisition Corp, both Inspired and Hydra’s boards of directors have unanimously approved the proposed transaction. Weil said, “We have been searching for a compelling business that utilizes our skill set to drive growth. We are excited to have the opportunity to partner with Luke and his team as we work together to grow the digital business through increased focus and the deployment of new technology and content,” according to the press release. Alvarez echoed Weil’s enthusiasm saying, “Our visions are aligned, and the Inspired team is looking forward to working with Hydra to drive value through organic and strategic growth.”

The sale of Inspired comes on the heels of a deal to supply its virtual sports games to the online operations of the Golden Nugget Atlantic City, and most recently, the finalization of a similar agreement with Resorts Casino Hotel.

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