29.02.2024

by Mateusz Mazur

IGT Announces Strategic Business Merger with Everi Holdings in $6.2 Billion Deal

International Game Technology (IGT) has revealed plans to separate its Global Gaming and PlayDigital segments and merge them with Everi Holdings, a renowned gaming machine manufacturer, in a transformative deal valued at $6.2 billion, inclusive of debt.

This strategic realignment is poised to streamline IGT into a specialized global lottery entity, distinguishing its diverse portfolio that spans land-based gaming, iGaming, sports betting, and fintech solutions.

A New Chapter for IGT and Everi Holdings

The merger, anticipated to conclude by late 2024 or early 2025 pending regulatory approvals, signifies a pivotal shift for both entities. IGT shareholders are expected to retain approximately 54% ownership in the newly combined company, with the remaining equity allocated to Everi stockholders.

Post-merger, Everi will adopt the International Game Technology name and continue its operations on the New York Stock Exchange under the IGT ticker.

Strategic Synergies and Enhanced Market Position

Vince Sadusky, IGT’s CEO, emphasized the complementary strengths of the merging businesses, stating “We are bringing together two businesses with complementary strengths that are stronger and more valuable together.”

The transaction assigns an enterprise value of $4 billion to IGT’s Global Gaming and PlayDigital units and $2 billion to Everi. It also forecasts approximately $85 million in cost savings, alongside an anticipated pro-forma revenue of $2.7 billion for 2024.

Our Comment on the Article

The merger between IGT’s gaming divisions and Everi Holdings marks a significant milestone in the gaming and lottery industry, heralding a period of consolidation and strategic refocusing. By realigning its business structure, IGT is poised to enhance its core lottery operations while leveraging Everi’s manufacturing capabilities to create a powerhouse in the gaming sector.

This deal not only underscores the dynamic nature of the gaming industry but also highlights the strategic maneuvers companies are adopting to navigate the competitive landscape and foster growth. As the newly formed entity embarks on this journey, the gaming and lottery markets await the innovative solutions and enhanced customer experiences that are sure to emerge from this synergistic partnership.

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