Inspired Entertainment has reached a definitive agreement to purchase the Gaming Technology Group (NTG) of Novomatic UK, for $120m in cash.

Following the agreement, Inspired said it would be positioned to supply an extensive range of products and services across the UK and Europe.

Completion of the deal would see Inspired manage more than 75,000 gaming machines across the continent.

Through shared costs and increased scale, Inspired expects to achieve synergies of $12.3m to $13.3m.

It also expects to reduce capital deployed in the pub gaming sector, as the sector continues its ongoing digital transformation.

Lorne Weil, Executive Chairman of Inspired Entertainment, said: "The potential acquisition of NTG is transformational for Inspired, enabling us to dramatically increase the size, scale and scope of our business by combining our highly complementary, but largely non-overlapping, businesses.

"Inspired and NTG currently operate in different segments but have much in common in terms of providing resources for our customers and their consumers. This combination would provide additional resources for our core businesses and combine the great content and machine portfolio from each."

NTG is comprised of the following six companies; Gamestec Leisure, Playnation Limited, Astra Games Limited, Bell-Fruit Group Limited, Harlequin Gaming Limited and Innov8 Gaming Limited.

The casino assets of Astra Games will not be included in the Inspired deal.