IGT and Everi have announced a merger that creates a one-stop-shop offering across land-based gaming, iGaming, sports betting, and fintech.
IGT will spin off its slot machine and digital gaming operations to shareholders, who will receive approximately 54% ownership interest in the combined company. After closing, Everi will change its name to International Game Technology, Inc. and will trade under the ticker IGT on the NYSE. Current Everi shareholders will own 46% of the new entity.
The transaction implies an enterprise value for IGT’s Global Gaming and PlayDigital businesses of approximately $4 billion, and an enterprise value for Everi of approximately $2.2 billion. Once combined, the new entity will feature approximately 70,000 electronic gaming machines.
“We are bringing together two businesses with complementary strengths that are stronger and more valuable together. The combination results in a comprehensive and diverse product offering, addressing more aspects of the gaming ecosystem across land-based gaming, iGaming, sports betting, and fintech.”
-Vince Sadusky, IGT CEO
Michael Rumbolz, Everi Executive Chairman, will become chairman of the board of directors of the combined company.
“We believe this merger combines two highly complementary businesses in a transformational manner, creating a global, land-based and digital gaming, fintech and systems business. We expect the combined company will deliver a comprehensive range of products and services that will engage gaming patrons and drive efficiencies and revenues to our customers,” stated Rumbolz.
This will also separate IGT’s Global Lottery business, which will go on operating as a pure-play global lottery player.
Marco Sala, IGT Executive Chair of the Board, added that “IGT’s shareholders will continue to own 100% of IGT’s Global Lottery business” in addition to their 54% majority stake in the new combined company.
The lottery segment will eventually change its name and continue to trade on the NYSE under a new ticker symbol, both of which are yet to be determined.
Deutsche Bank and Macquarie Capital are providing financing commitments of $3.7 billion, plus a $500 million revolver to facilitate the transaction. All voting members of the Boards of Directors for both IGT and Everi unanimously approved the deal, so it is now subject to regulatory approvals and the final approval by Everi and IGT shareholders before moving all the way forward.
It’s expected to officially close in late 2024 or early 2025.
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