IGT and Everi Merger Unleashes Strategic Revenue Opportunities, Says Sadusky

Strategic Realignment for Growth

During a recent conference call with investment analysts, Sadusky shared insights into the fourth-quarter earnings, revealing a record-setting adjusted EBITDA for 2023 at nearly US$1.78 billion, marking a 6.9 percent increase from the previous year. The decision to separate and merge specific business segments stems from a comprehensive strategic evaluation aimed at maximizing the value of IGT’s diverse portfolio.

“The separation will allow us to adopt more focused operating and capital allocation strategies, tailored capital structures for distinct business models, and enhanced flexibility to explore both organic and inorganic growth avenues,” Sadusky explained. He highlighted the stark contrast in trading multiples between IGT and its lottery and gaming peers, underscoring the untapped value potential within IGT’s operations.

Synergistic Integration with Everi

The merger with Everi is not just a business transaction; it represents a fusion of complementary strengths. IGT, known for its extensive global product offerings in Class III, VLTs, iGaming, and casino management systems, combines forces with Everi’s North American-centric Class II games and fintech prowess. Sadusky emphasized, “Together, we can create an integrated player journey, from physical casino floors to digital platforms, supported by a robust recurring revenue model.”

The combined entity is expected to make significant strides in revenue and EBITDA growth, with projections indicating a mid single-digit compound annual growth rate through 2026 for revenue, and an even more robust high single-digit rate for EBITDA. “Looking at the pro forma figures, we’re anticipating revenues of US$2.6 billion and EBITDA exceeding US$1 billion, with recurring revenue streams accounting for over 60 percent of this figure,” Sadusky shared.

Our Comment on the Article

The merger between IGT and Everi Holdings signifies a pivotal moment in the gaming and digital technology sector, promising to reshape the competitive landscape through enhanced revenue synergies and strategic growth opportunities. Vince Sadusky’s leadership and forward-thinking approach herald a new era for the combined entity, poised to capitalize on its synergistic strengths and solidify its position in the market. This strategic move not only reflects the evolving dynamics of the industry but also sets a precedent for future collaborations and innovations in the gaming and technology space.