Funds linked to private equity firm Apollo Global Management Inc announced on Tuesday completion of the acquisitions of International Game Technology Plc’s gaming and digital business, and of gaming equipment provider Everi Holdings Inc.
“The all-cash transaction, valued at approximately US$6.3 billion, brings together complementary businesses to form a privately-held global leader in gaming, digital and financial technology solutions,” said the Apollo side in a statement that day.
The announcement said that with effect from Tuesday, Everi’s common stock had been delisted from the New York Stock Exchange.
Everi stockholders are receiving US$14.25 per share in cash, and International Game Technology Plc is receiving US$4.05 billion of gross cash proceeds.
The update added that International Game Technology Plc’s gaming and digital business and Everi would be integrated into a combined enterprise based in Las Vegas, Nevada, in the United States, “in the coming months”.
Apollo said the combined business would operate under the IGT name, “while retaining the Everi brand in select markets and product lines”.
The update further noted the new-format IGT would be organised into three business units: gaming, digital and fintech.
Nick Khin, interim chief executive of IGT, was cited describing the deal as “a defining moment for our industry”.
He stated: “By uniting two leading organisations, we are building an enterprise with the scale, talent and technology to lead the future of gaming. With Apollo’s support, we are very well-positioned to deliver exceptional content across land-based and digital… along with integrated financial solutions and casino management that… drive value for our customers.”
Apollo’s statement said that – as previously announced – Hector Fernandez, a former CEO of Aristocrat Gaming, is expected to assume the role of CEO of the new IGT in the fourth quarter this year, following the expiration of a customary non-compete period.
Mr Khin will then become CEO of IGT’s gaming business unit.
Daniel Cohen, partner at Apollo, was quoted as saying in Tuesday’s statement: “Bringing together highly-complementary businesses creates a more competitive, agile and well-capitalised platform built for long-term growth.”
The former IGT lottery business is now branded as Brightstar Lottery.
“The sale of the gaming and digital business positions Brightstar for an exciting future,” said Marco Sala, executive chair of Brightstar, in a Tuesday statement from the Brightstar side.
He added: “The balanced allocation of proceeds to significantly reduce debt and return substantial capital to shareholders, in addition to funding investments in growth and improving ongoing shareholder returns, reflect the board’s continuing commitment to enhance shareholder value.”
