The merger of UK-based gaming systems specialist Playsafe Monitoring and international debit card system company Embed is a perfect fit for both companies.

The Embed Playsafe fit is complementary in terms of both the product ranges and the regions covered. "I had been looking closely at the markets we were covering and the product range we have and wondering what will happen over the next three to five years," Playsafe head David Stenning told InterGame.

"I came to the conclusion that redemption was a key issue." Embed is a major player in the amusement industry, especially in the field of redemption. "I first met (Embed chairman) Adam Steinberg and (managing director) Mark Easte over two years ago. And over the past year we have been talking about the possibilities."

He added: "I liked the look of their product and I liked the look of the company. And it gave me the opportunity to think about the future of Playsafe - I needed to make sure the company could progress going forward. As we discussed the possibilities, it became clear that it was logical to merge the two companies.

"There are many synergies. For a start, both companies come from an operating background. We also discovered that the staff of the two companies are like-minded people."

However, it’s the differences that create the fit. Playsafe services the gaming sector, while Embed is strong in amusements and redemption. Playsafe is strong in the UK and Europe, while Embed’s major markets are Australasia, the Middle East and the US. "Embed is keen to make inroads in Europe and we want to take Playsafe’s gaming products to a wider international audience," said Stenning.

Said Steinberg: "We are not big in Europe and the UK, but we are in many other international markets. We wanted to change this but we knew we needed the right infrastructure. The Playsafe merger is ideal for us because a lot of value is placed on reputation and it is important to understand the market.

"In the US we did it the hard way. We recruited the right people and achieved success in the end, but it wasn’t easy. This time we are easing into the market with the help of Playsafe. The market here is different and the marriage between gaming and amusement is different. We now have a complementary set of products and a huge opportunity to provide customers with a one-stop shop."

Also, the companies’ development teams will be able to get their heads together and come up with a raft of products for the future. "Both technical teams have got together to talk about opportunities going forward," said Stenning. "We are experts in our own fields and the combined expertise will be a force to be reckoned with.

"So we can see opportunities arising in the next few years - and not just in this industry. We are aware that there are other areas which could benefit from our future development. To that end we have already started a search for a new person to head up the group’s international sales and marketing efforts - someone who also has experience in perhaps other sectors of leisure and entertainment. But for now there is a lot of work to be done in order to fully understand each other’s products. It is a steep learning curve.

"What is clear to us is that in today’s FEC sector you have got to supply a little bit extra to stay in the game. You have got to be able to provide a wide variety of entertainment value."

Steinberg added: "We believe that technology will play an increasing part in the leisure industry in the future."

The company that results from the merger, to be known as Embed Playsafe, will be marketed as a single entity rather than separate brands. "We are now one business," said Steinberg. "At the EAG Expo in London in January we will begin to get the message across. We will also provide an indication of what is coming in the future."

Both sides are working rapidly to bring their teams together. During September a member of the US staff of Embed spent three weeks at Playsafe’s UK base in Bath to carry out product training. "Embed brings many group efficiencies to the table," said Steinberg. "We have some great procedures and systems and so does Playsafe, which makes this very much a win-win deal."

Stenning concluded: "There are two immediate requirements. We need to achieve complete product awareness and we need to get our internal systems properly combined."