Two important players in the gaming industry, International Game Technology PLC and Everi Holdings Inc., were acquired by a new holding company under Apollo Global Management, Inc. All of these cash transactions, worth around $6.3 billion, put both businesses under the umbrella of Apollo’s managed funds, drastically changing the gaming landscape.

Transaction details:

The final agreement, announced on Feb. 29, 2024, included that IGT would first spin off its Gaming & Digital business in a taxable manner to shareholders and then merge with Everi. The combined operations of IGT Gaming and Everi would then be acquired by Apollo Fund and converted into a private company within the consolidated corporate structure.

Under the terms of the transaction, Everly shareholders will receive $14.25 per share in cash, a 56% premium to their closing price on July 25, 2024. IGT will receive a total cash return of $4.05 billion through the sale of IGT Gaming, which it plans to use to reduce debt and return value to shareholders.

De Agostini S.p.A., Italy-based IGT’s majority shareholder, has pledged a minority equity investment in the newly formed combined company, according to MarketWatch. After the deal is completed, IGT will rebrand and focus solely on its global lottery business to position itself as a leading pure-play lottery company.

The acquisition was unanimously approved by the IGT Board of Directors Special Committee and the Everi Board of Directors. The existing agreement regarding the possible merger of IGT and Everi, which was previously established in February 2024, was terminated under this new agreement.

Leadership and Future Prospects:

Vince Sadusky, IGT’s CEO, expressed enthusiasm, highlighting the acquisition as a step forward in IGT’s strategic initiative and proof that Apollo Funds is recognizing IGT Gaming’s industrial stature and potential. “This transaction will ensure IGT Gaming’s long-term success by investing additionally in its core sectors and expanding its products,” Sadusky told IGT News.

Randy Taylor, president and CEO of Avery, also backed the deal and highlighted the potential for the integration of IGT Gaming and Avery to deliver solid value to shareholders and strengthen market leadership.

In a press release from Apollo Global, Apollo’s partner, Daniel Cohen, commented on the strategic importance of the acquisition: “We are excited to bring these two industry leaders together. This combination not only highlights our commitment to the gaming and leisure sectors, but also enhances our ability to take advantage of growth opportunities.”

The acquisition, subject to standard closing conditions and regulatory approvals, is expected to be completed by the end of the third quarter of 2025. As the gaming industry watches these major moves, the companies involved are preparing for a transition that promises to significantly reshape their operational and strategic directions. 바카라사이트