International Game Technology PLC (IGT) has announced that it has entered into a merger agreement with Everi Holdings Inc.
The deal will see IGT separate its Global Gaming and PlayDigital from the group to merge with Everi to create a new global gaming and fintech enterprise. Under the terms of the agreements, IGT shareholders will own approximately 54% and Everi stockholders are expected to own approximately 46% of the combined company.
The deal has been approved by the IGT Board of Directors and Everi Board of Directors. The deal values the combined businesses at approximately $6.2 billion on an enterprise value basis.
Marco Sala, IGT Executive Chair of the Board said of the deal:
“As previously announced, IGT’s Board of Directors embarked on a review of strategic alternatives for our Global Gaming and PlayDigital businesses as a way to unlock the intrinsic value of our portfolio of industry-leading assets. The transaction announced today is a key milestone in that process. The transaction will combine two robust gaming platforms with complementary capabilities, geographic footprints, and enhanced growth opportunities.
It also facilitates the separation of IGT’s Global Gaming and PlayDigital businesses from our Global Lottery business, resulting in a pure play global lottery business. After closing, IGT’s shareholders will continue to own one hundred percent of IGT’s Global Lottery business, which is positioned for long-term success, and will own a majority of a combined company that offers global gaming, digital and fintech.”
Vince Sadusky, IGT CEO added:
“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. The creation of separate gaming and lottery companies, each with experienced management teams and simplified business models, better positions each company to service customers and create significant value for stakeholders.”
Michael Rumbolz, Everi Executive Chairman noted:
“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.”
According to company projections, 2024 revenue of the combined company is expected to hit approximately $2.7 billion while projected pro forma 2024 Adjusted EBITDA is estimated at approximately $1 billion.
The deal values IGT’s Global Gaming and PlayDigital businesses at approximately $4.0 billion, and Everi at approximately $2.2 billion.
As part of the transaction, IGT will receive approximately $2.6 billion in cash that will be funded with the proceeds of debt incurred by the combined company. $2 billion will be allocated to IGT debt repayment with the remaining amount allocated to separation and divestiture expenses, tax leakage and general corporate purposes.
IGT will change its name and continue to trade on the NYSE under a new ticker symbol. The transaction is expected to close in late 2024 or early 2025.
Based in London, Natasha is a former sports journalist with experience working for some of the biggest athletes & brands in the world of sports and iGaming.