Testing and certification leader BMM Testlabs has been purchased by The Visualize Group, a private equity firm based in New York, both parties announced on 15 April.

Details of the financial terms were not shared in the release. BMM operates three branches: its core testing arm, a cybersecurity unit and an RG training service. Only RG24seven Virtual Training is excluded from the deal, the company told iGB.

BMM president and CEO Martin Storm will continue to lead through the transition. He will also “retain a large ownership stake” in the company, while Visualize stated it is “excited to partner with Storm and the talented BMM team,” according to the statement.

The acquisition marks a strategic bet on the expanding regulated gambling market. Regulators often rely on external labs to assess and approve gaming technology. Founded in 1981, BMM runs 16 global offices and holds more than 700 licences. It is recognised as a top competitor in testing, alongside Gaming Laboratories International.

“Our team has closely tracked the fast global growth of regulated gaming and expect this to continue,” said CC Melvin Ike, managing partner of Visualize. “As new jurisdictions open worldwide, demand for safe, compliant gaming increases. With its reach, expertise and reputation, BMM is ideally placed to capture these opportunities.”

Storm added it is “an honour to take part in this journey and see our goals being realised.”

Gaming increasingly attractive to private equity

Private equity activity in gaming has gained pace since early 2024, expanding from suppliers and operators into the testing sector.

In July last year, Apollo Global Management acquired both IGT and Everi Holdings for $6.3 billion (£4.76 billion/€5.5 billion). Earlier, Brightstar Capital privatised supplier AGS for $1.1 billion. That same July, Bally’s Corp was purchased by Standard General for $4.6 billion.

Valuations across gaming firms have remained low, with most stocks well under their 52-week and peak levels. US tariff-related volatility added more pressure. As a result, private equity has seized chances where industry operators lacked resources.

“The issue is, other [gaming] firms can’t exploit [these valuations] like private equity does,” said Rick Arpin, US gaming head at KPMG, to iGB. “They lack capital reserves. They’d need to borrow, and borrowing is costly. Their equity isn’t strong either. This opened the door for private equity to be key acquirers.”

Visualize to implement “broad-based employee ownership”

Gaming’s strict regulations often create barriers for mergers and acquisitions. However, with BMM’s broad licensing and Storm’s leadership, Visualize will likely face fewer challenges. The firm also intends to invest in its workforce.

“As part of this deal, Visualize will introduce a broad employee ownership scheme, giving BMM staff a chance to join in the value creation plan for BMM. This includes multiple organic and acquisition-driven growth strategies already mapped out,” the announcement noted.

BMM currently employs more than 600 people, though it remains unclear how many belong to the RG24seven unit excluded from the sale.