In a move that will see its iGaming content more than double, the UK-based gambling company IGT announced its acquisition of iSoftBet. IGT entered into a definitive agreement with iSoftBet to gain its content and aggregation business for approximately €160 million.

iSoftBet is a leading online casino software provider with a proprietary games suite of 125 titles, and its third-party aggregator library includes more than 4,600 games. On finalising the agreement, IGT gains ownership of these iGaming titles, the proprietary aggregation platform, and leading data-driven promotional and user engagement tools.

The online casino deal catapults IGT into the iGaming segment, and they expect to complete the agreement in the second quarter of 2022.

 The Missing Link

IGT already has successful operations in Italy, Nevada, and Road Island. With headquarters based in the United Kingdom, IGT is a New York Stock Exchange-listed company and boasts a staff complement of approximately 10,500 employees. The iSoftBet acquisition inserts a vital piece of the gaming puzzle for the company.

Reports cite how Carlo Santarelli from the Deutsche Bank believes this deal significantly improves IGT’s network and allows them to serve the online casino industry better.

Santarelli wrote how the acquisition expands IGT’s network “with what we believe will be a stronger suite of customer experience-oriented titles, something we believe IGT has been lacking in to date, as a physical equipment supplier first operator.”

The all-cash deal is IGT’s first online casino acquisition since their GTECH gain in 2014 of the mobile games supplier Probability Inc.

As his first M&A transaction since stepping into his role as CEO, Vince Sadusky from IGT comments:

“The acquisition of iSoftBet will provide market-tested proprietary digital content, advanced game aggregation capabilities, scalable promotional tools, analytics and strong creative talent to IGT’s PlayDigital operations.”

Sadusky says this deal enhances PlayDigital’s competitive edge to provide top content across their European and North American portfolios. IGT is a market leader in lottery products and land-based casino products such as slot machines. With the addition of iSoftBet’s content library and their aggregation business, IGT positions itself to become a global gambling market leader.

 Sensible Business Strategy

iSoftBet currently boasts a talented workforce of 350 employees across 20 regions in Europe. Established in 2010, the Maltese iGaming company serves over 260 operators in the B2B segment and offers more than 125 proprietary games. Its aggregation platform holds over 4,600 titles from leading software providers in the online casino industry.

As a leading content provider, iSoftBet is a good choice for IGT investors, and the 2021 figures confirm this. The software provider generated €30 million in revenue with approximately €8 million in EBITDA. A steady share increase following the announcement confirms the investors agree.

IGT posted $42 million in revenues for its digital and betting units during the last quarter of 2021. The company’s EBITDA for the period was $9 million.

If the parties meet all due diligence and other customary closing conditions, IGT will incorporate iSoftBet’s portfolios and employees into their business by mid-2022.