International Game Technology PLC and Everi Holdings Inc., two outstanding gamers within the gaming business, have been acquired by a brand new holding firm underneath Apollo Global Management, Inc. This all-cash transaction, valued at about $6.3 billion, brings each companies underneath the umbrella of Apollo’s managed funds in a transfer that considerably reshapes the gaming panorama.
Details of the transaction:
The definitive agreements introduced on February 29, 2024, element that IGT will first spin off its Gaming & Digital enterprise to its shareholders in a taxable method and then merge it with Everi. The mixed operations of IGT Gaming and Everi will then be acquired by the Apollo Funds, transitioning into privately held entities inside a unified company construction.
Under the phrases of the deal, Everi stockholders are set to obtain $14.25 per share in money—a 56% premium on its closing worth as of July 25, 2024. IGT will obtain $4.05 billion in gross money proceeds from the sale of IGT Gaming, with plans to make use of a considerable portion of these funds to cut back its debt and return worth to its shareholders.
According to Market Watch, De Agostini S.p.A., the bulk shareholder of IGT primarily based in Italy, has dedicated to a minority fairness funding within the newly shaped mixed entity. Following the completion of this transaction, IGT will rebrand and focus completely on its Global Lottery enterprise, positioning itself as a number one pure-play lottery entity.
The acquisition has acquired unanimous approval from each the particular committee of the IGT Board of Directors and the Everi Board of Directors. Previous agreements associated to a possible merger between IGT and Everi, established earlier in February 2024, have been terminated in favor of this new association.
Leadership and future outlook:
IGT’s CEO, Vince Sadusky, expressed enthusiasm concerning the acquisition, highlighting it as a development of IGT’s strategic initiatives and a testomony to the Apollo Funds’ recognition of IGT Gaming’s business stature and potential. “This transaction allows IGT Gaming to further invest in its core segments and expand its offerings, ensuring long-term success for our Global Lottery business,” Sadusky remarked, per IGT news.
Everi’s President and CEO, Randy Taylor, additionally supported the transaction, emphasizing the assured worth it brings to shareholders and the potential for enhanced market management by means of the mixing of IGT Gaming and Everi.
Daniel Cohen, a Partner at Apollo, commented on the strategic significance of the acquisition in Apollo Global’s press release: “We are thrilled to bring together these two industry leaders. This combination not only underscores our commitment to the gaming and leisure sector but also enhances our capabilities to capitalize on growth opportunities.”
The acquisition, topic to straightforward closing circumstances and regulatory approvals, is anticipated to be finalized by the top of the third quarter of 2025. As the gaming business watches this main transfer, the concerned corporations put together for a transition that guarantees to reshape their operations and strategic instructions considerably.
