International Game Technology IGT) and Everi Holdings (Everi) have entered into definitive agreements whereby IGT’s Gaming & Digital business (IGT Gaming) and Everi will be simultaneously acquired by a newly-formed holding company owned by funds managed by affiliates of Apollo Global Management.
The transaction is all-cash and values the combined acquired businesses at approximately $6.3bn. IGT separated its IGT Gaming business as a taxable spin-off to shareholders back in February, immediately combining that business with Everi. Apollo Funds will acquire this combined entity.
Everi stockholders will receive $14.25 per share in cash and IGT will receive $4.05bn of gross cash proceeds for IGT Gaming. IGT’s majority shareholder, De Agostini SpA, an Italian Società per Azioni, will make a minority equity investment in the new combined enterprise.
Vince Sadusky, CEO of IGT, says, “Our new agreement represents a positive evolution of our previously announced transaction with Everi and a successful culmination of the strategic review process that IGT launched last year.
“With the Apollo Funds, we have found a partner that recognizes the strength of IGT Gaming, the value of our talent and our position in the industry. This transaction will allow IGT Gaming to continue to invest in and enhance its growing core segments while providing customers with a more comprehensive portfolio of offerings.”
Randy Taylor, Everi President & CEO, adds: “We believe this transaction maintains the integrity and strong strategic rationale of our original agreement with IGT, but now also provides significant and certain value to our stockholders as we move forward with the Apollo Funds as our partner.
“By joining forces with IGT Gaming, we expect to continue to lead, innovate and provide unparalleled value to our customers as a stronger player in the global gaming, FinTech and digital industry.”
Daniel Cohen, Partner at Apollo, concludes: “We are excited to reach this agreement with IGT and Everi, which establishes a leading, diversified solutions provider that is well positioned across the entire gaming ecosystem.
“As an active investor in the gaming and leisure sector for many years, we have long admired both companies and their highly talented teams. We strongly believe in the value proposition of the combination and are confident these complementary gaming platforms will be even better positioned under private ownership to capture the opportunities ahead to grow and create value.”
