International Game Technology (IGT) unveiled a transformative move on Thursday, announcing the separation of its Global Gaming and PlayDigital businesses and their merger with gaming machine manufacturer Everi Holdings in a deal valued at $6.2 billion, inclusive of debt.
The decision follows a strategic review of IGT's units, positioning the company to streamline its operations and focus solely on its global lottery business. With offerings spanning land-based gaming, iGaming, sports betting, and fintech, the lottery segment emerged as a dominant revenue driver, constituting more than half of IGT's overall revenue in the third quarter.
Upon the deal's closure, anticipated in late 2024 or early 2025, subject to regulatory approvals, Everi will undergo a significant transformation, adopting the name International Game Technology and trading on the New York Stock Exchange under the symbol IGT. Vince Sadusky, CEO of IGT, is slated to helm the combined entity, headquartered in Las Vegas.
Under the terms of the agreement, IGT shareholders will retain approximately 54% ownership in the merged company, with the remainder held by Everi stockholders. The transaction assigns an enterprise value of $4 billion to IGT's Global Gaming and PlayDigital businesses and $2 billion to Everi.
The merger is expected to yield substantial synergies, with projected cost savings of approximately $85 million. Additionally, the combined entity anticipates achieving pro-forma revenue of $2.7 billion by 2024, further solidifying its position as a leading player in the gaming industry.
"We are bringing together two businesses with complementary strengths that are stronger and more valuable together," remarked Vince Sadusky, expressing confidence in the strategic rationale behind the merger. The consolidation of IGT's expertise in lottery operations with Everi's gaming technology prowess is poised to unlock significant value and drive sustainable growth for the newly formed entity.
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