IGT Gaming Sold to Apollo for $6.3 Billion
GoLocalProv Business Team
IGT Gaming Sold to Apollo for $6.3 Billion
On Friday morning, IGT Gaming, whose roots go back to a Rhode Island start-up, GTECH, is being acquired by a holding company of Apollo Global Management. Apollo's former CEO had close ties to Jeffrey Epstein and ultimately resigned from his leadership posts in the investment firm.
On Thursday, Bally's announced it was being acquired by a hedge fund.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThe all-cash transaction that values IGT at approximately $6.3 billion.
De facto, the deal splits the lottery business from the gaming company.
IGT is the Rhode Island’s lottery provider and by contract with the state, IGT is required to employ more than 1,000 in Rhode Island.
It is unclear how the deal will impact Rhode Island operations and employees.
Calls to IGT were not responded to at the time of publication.
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. Under the terms of the new agreements, the Apollo Funds will acquire IGT Gaming and Everi. Following closing, IGT Gaming and Everi will be privately owned companies that are part of one combined enterprise.
Under the terms of the new agreements, Everi stockholders will receive $14.25 per share in cash, representing a 56% premium over Everi’s closing share price on July 25, 2024. IGT will receive $4.05 billion of gross cash proceeds for IGT Gaming. IGT expects significant portions of the cash proceeds to be used to repay debt and to be returned to shareholders.
De Agostini S.p.A., a società per azioni organized under the laws of Italy, the majority shareholder of IGT, has committed to make a minority equity investment in the combined enterprise at the closing of the transaction.
Upon completion of the sale of IGT Gaming to the Apollo Funds, IGT will change its name and stock ticker symbol, becoming a premier pure play lottery business.
Vince Sadusky, IGT PLC CEO, said, “Our new agreement represents a positive evolution of our previously announced transaction with Everi and a successful culmination of the strategic review process that IGT launched last year. With the Apollo Funds, we have found a partner that recognizes the strength of IGT Gaming, the value of our talent and our position in the industry. This transaction will allow IGT Gaming to continue to invest in and enhance its growing core segments while providing customers with a more comprehensive portfolio of offerings. After the closing of this transaction, IGT’s shareholders will continue to own one hundred percent of IGT’s Global Lottery business, which will be positioned for long-term success as a pure-play global lottery player with a more focused, compelling business model and optimized capital structure to drive long-term shareholder value.”Leadership, Governance & Structure
Sadusky will oversee the separation of IGT Gaming and support the transition through transaction completion. Post-closing, Sadusky will continue in his role, leading the lottery-focused company under its new name and stock ticker symbol.
UPDATED: 9:07 AM