IGT finalises €700m sale of Italian payments business to PostePay


International Game Technology, through its IGT Lottery subsidiary, has completed the €700m divestment of its Italian proximity payment business to PostePay.

This negotiated sale price represented an enterprise value of €630m and approximately €70m of net unrestricted cash. It is estimated that €140m in unrestricted cash is said to be held at closing. 

The gaming firm noted that this increase in unrestricted cash is primarily attributable to timing of vendor payments and operating cash flows generated since December 31, 2021. 

The business being sold generated in the region of €228m in gross revenues and approximately €40m in EBITDA through 2021, with IGT adding that the price reflects “a valuation multiple in line with the most recent Italian transactions in the proximity payments sector”. 

Furthermore, IGT noted that proceeds gained from the transaction will primarily be used to pay expenses and reduce debt.

Upon initially disclosing the potential offload earlier in the year, Vince Sadusky, CEO of IGT, noted that the move would enable the firm to execute its long-term strategy via a streamline product and solutions portfolio.

Last month, IGT slightly reduced its full-year revenue outlook after the group reported a slight drop of two per cent to $1.02bn (2021: $1.04bn) during the year’s second quarter.

Tightened full-year revenue guidance has seen IGT lower its high end range by $100m to between $4.1bn-$4.2bn, with the third quarter expected to produce $1bn-$1.1bn.