International online and land-based gambling provider IGT has finalised its sale for an incredible $4.05 billion. Join us as we learn more about its merger with Everi and how this informed its sale to asset management company Apollo Global.
News of International Game Technology (IGT), a well-established land-based and online casino game developer, has been doing the rounds since the last quarter of 2023. At the time, the igaming company opted to play dumb when asked for comment on the rumours that Private equity giant Apollo Global Management was one of the top contenders, telling Reuters:
Quote"We are still in the process of exploring strategic alternatives for our Global Gaming and PlayDigital segments and can't comment on rumours or speculation."
However, all the skullduggery and weak attempts at misdirection ended this week with the announcement of a finalised sale.
Whammy One: Merger
While it made no sense why IGT was so reticent to comment directly on its plans to sell and which offers it was considering, a merger report in February 2024 clarified its reasoning.
A press release by IGT said:
Quote“On February 29, 2024, IGT and Everi announced that they had entered into definitive agreements pursuant to which IGT would separate the IGT Gaming business by way of a taxable spin-off to IGT shareholders and then immediately combine such business with Everi.”
Everi Holdings, formerly Global Cash Access Holdings, is a Nevada-based company that produces slot machines and financial equipment for casinos. The deal, which was valued at an astounding $6.2 billion, would see Everi Holdings renamed to International Game Technology, Inc.
Whammy Two: Sold!
This newly formed gambling company, International Game Technology PLC (NYSE: IGT), would be purchased by a “newly formed holding company owned by funds managed by affiliates of Apollo Global Management.”
Robert Vincent, chairman of IGT Global Solutions, explained:
Quote"What was announced today is an evolution of the deal that had been announced previously, which was a merger/ spinoff with Everi."
The deal will see Apollo Global Management take control of the online gambling and gaming divisions of IGT, including its video game division, sports betting operations, and Rhode Island lottery operations.
The finalised agreement will see Apollo Management pay $4.05 billion in an ‘all-in cash’ deal without any additional medium to long-term revenue payouts or special bonus provisions.
The cash settlement will clear any outstanding debts and pay investors who received a locked-in share value of $14.25. This value represents a 56% premium on the closing share price on 25 July 2024.
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