Gaming giant Apollo made a US$ 6.3 billion deal to acquire International Game Technology (IGT) and Everi.
In a major shakeup, International Game Technology PLC (IGT) and Everi Holdings Inc. are set to join forces under the management of Apollo Global Management, Inc. This groundbreaking deal, valued at a whopping $6.3 billion, is expected to reshape the global gaming, FinTech, and digital industries.
In February 2024, IGT and Everi had agreed to a deal where IGT would spin off its Gaming and Digital business (IGT Gaming) through a tax-free spinoff. Life comes full circle as, post-closing, this very same business, along with Everi, will become private companies under the umbrella of a single combined entity owned by Apollo Funds.
Navigating the Integration
The harmony between IGT, Everi, and Apollo Global Management will unfold through the strategic merging of IGT's gaming business with Everi – a leading provider of casino technology and payments. This strategic marriage aims to bolster the combined entity's position in the market, fostering innovation and competitiveness.
Once regulatory approvals are in place and Everi shareholders give the green light, this deal is slated to wrap up by the end of 2025's third quarter. To the joy of IGT shareholders, their approval isn't required for the transaction to go through.
By partnering with Apollo Funds, Everi shareholders can look forward to significant value, with each share fetching a handsome $14.25 in cash – a 56% premium over the closing price on July 25th, 2024. In exchange, IGT will receive $4.05 billion in cash proceeds for IGT Gaming. Portions of these funds will be allocated for debt repayment and shareholder returns, improving IGT's financial health.
Looking Ahead: A Brighter Future
To bridge the gap between the parties, De Agostini S.p.A., IGT's majority shareholder, has committed to invest in the combined enterprise at the point of sale. This move will enable IGT to focus solely on building a premier lottery-centric business.
Reflecting on the deal, Vince Sadusky, CEO of IGT, voiced his optimism, stating, "This transaction marks the culmination of last year's strategic review process. It sets the stage for IGT Gaming to continue investing in and enhancing its core segments while offering clients a broader portfolio of offerings."
Randy Taylor, President and CEO of Everi, echoed this sentiment, asserting, "By allying with IGT Gaming, we aim to strengthen our presence in the global gaming, FinTech, and digital industries, continuing to lead and innovate while providing unmatched value to our clients."
The exciting aftermath of this game-changing partnership is expected to unfold at the SiGMA Eastern Europe Conference in Budapest, happening from September 2-4, 2024. So, stay tuned for more thrilling developments!
The strategic merging of IGT's gaming business with Everi, a leading provider of casino technology and payments, will promote innovation and competitiveness within the combined entity. Post-closing, this joint business will become a private company under the umbrella of a single combined entity owned by Apollo Funds, leveraging technology for growth and development in the global gaming, FinTech, and digital industries.
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