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Apollo Global Management is acquiring International Game Technology (IGT) and Everi Holdings in a $6.3 billion all-cash deal.
IGT CEO Vince Sadusky said the deal aligns with the company’s goals: “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.”
The acquisition, announced July 26, comes on the heels of a February announcement where IGT planned to spin off its gaming and digital business and merge it with Everi. However, that deal fell through, paving the way for this outright purchase by Apollo.
Key takeaways
- Apollo Global Management is acquiring IGT and Everi Holdings in a $6.3 billion all-cash deal.
- This acquisition will unite IGT’s Gaming & Digital division and Everi under a single private ownership structure, according to a news release.
- Post-transaction, IGT (NYSE: IGT) will rebrand itself as a pure-play lottery company, adopting a new name and stock ticker symbol.
- Everi’s stock will be delisted from the New York Stock Exchange.
Financial impact of the acquisition on IGT and Everi
The acquisition will unite IGT’s Gaming & Digital division and Everi under a single private ownership.
Everi shareholders will benefit significantly from the deal, with a cash payout of $14.25 per share. This represents a 56% premium over the company’s closing stock price on July 25.
Meanwhile, IGT will receive a substantial cash infusion of $4.05 billion from the sale of its gaming division. This transaction marks a strategic shift allowing IGT to focus on its core competencies while generating significant capital.
Everi President and CEO Randy Taylor added: “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.”
Both IGT and Everi are publicly traded on the New York Stock Exchange. IGT will rebrand itself as a pure-play lottery company, adopting a new name and stock ticker symbol. Meanwhile, Everi’s stock will be removed from the New York Stock Exchange once the deal is finalized.
The new combined company will be based in Las Vegas, Nevada. Everi, currently headquartered in Las Vegas, offers slot machines and financial services to casinos, and tech products for online casinos.
IGT, with a sales office in Las Vegas and manufacturing in Reno, will maintain its lottery operations in Italy under a new company name. Sadusky continued:
“After the closing of this transaction, IGT’s shareholders will continue to own one hundred percent of IGT’s Global Lottery business, which will be positioned for long-term success as a pure-play global lottery player with a more focused, compelling business model and optimized capital structure to drive long-term shareholder value.”
Leadership transition and regulatory approvals
The IGT and Everi boards of directors have fully endorsed the deal with Apollo.
Upon this, IGT CEO Sadusky will manage the separation of the gaming division and ensure a smooth transition until the deal closes, the release said. After completion of the transaction, he will continue as CEO of the newly formed lottery company.
Fabio Celadon, currently IGT’s EVP of strategy, will become CFO of the combined entity and Everi’s CFO, Mark Labay, will take on the role of chief integration officer.
The acquisition deal is subject to regulatory approval and the approval of Everi shareholders. The deal should close by the end of 2025. Unlike Everi, IGT shareholders do not need to approve the transaction.
Who is Apollo?
Apollo is a global investment firm specializing in alternative assets. Its core business focuses on generating superior returns for clients across a broad spectrum of risk profiles, from stable investments to high-growth private equity.
Hence, it achieves this through three primary strategies: yield, hybrid, and equity.
With approximately $671 billion in assets as of March 31, 2024, Apollo works toward expanding opportunities and delivering positive results.
Its asset management platform offers a range of investment opportunities, while its retirement services division, Athene, helps individuals and institutions secure their financial future.
