IGT explores strategic alternatives for Global Gaming and PlayDigital divisions

International Game Technology (IGT) has announced that it is considering strategic alternatives for its Global Gaming and PlayDigital divisions, indicating a potential sale of these subsidiaries.

Strategic review

To facilitate the process, IGT has enlisted the services of Deutsche Bank, Macquarie Capital, and Mediobanca to handle the sale, with legal counsel provided by Sidley Austin and White & Case.

Although no specific timeline has been established for the strategic review, IGT has cautioned that the final outcome may not necessarily result in a transaction. Marco Sala, IGT’s Executive Chair, highlighted the company’s recent efforts to enhance its strategic focus, including the reorganization around core product verticals, divestment of non-core assets, cost reduction, and significant improvements to its credit profile.

Sala expressed his belief that the current stock price does not adequately reflect the intrinsic value of IGT’s market-leading businesses and diversified cash flow profile. He stated, “The timing is right to assess opportunities that may enhance value for IGT’s shareholders.”

Evaluation of strategic alternatives

Vince Sadusky, IGT’s CEO, emphasized the company’s position as a global leader with extensive expertise in lottery, land-based gaming, iGaming, and sports betting. While undertaking the review and evaluation of strategic alternatives, Sadusky affirmed that IGT remains committed to achieving its growth objectives and long-term profit targets outlined during the November 2021 Investor Day.

The exploration of strategic alternatives for the Global Gaming and PlayDigital divisions underscores IGT’s dedication to maximizing shareholder value and capitalizing on the company’s strengths in various gaming sectors. As the process unfolds, industry observers will closely monitor IGT’s actions and decisions to gauge their potential impact on the company’s future growth trajectory.