Apollo Global has swooped in to secure a landmark deal within igaming as it lands the lucrative acquisition of IGT’s Gaming & Digital business as well as Everi Holdings.
It is reported that the US firm has been successful with a cash offer of $14.25 per share to Everi shareholders as it pursues the full acquisition of its combined business with IGT’s Digital and Gaming spin-offs.
In February, Everi moved to merge its business with IGT’s Global Gaming and PlayDigital units, as dealmakers seek to form a new independently-owned IGT separated from its lottery technology business.
The terms of the deal saw Everi secure $3.7bn and $500m credit facilities from Deutsche Bank and Macquarie Capital, respectively, to finance its merger with IGT spin-offs.
Vince Sadusky, IGT PLC CEO, commented: “With the Apollo Funds, we have found a partner that recognises the strength of IGT Gaming, the value of our talent and our position in the industry.
“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 optimised capital structure to drive long-term shareholder value.”
As a result of the all-cash counter offer which places a value of approximately $6.3bn, Apollo emphasised that IGT Gaming and Everi will be privately owned companies that are part of one combined enterprise.
Randy Taylor, Everi President and CEO, stated: “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.
“Apollo is a respected investment firm with a strong track record in the gaming sector, and they recognize the value of our business and see significant potential in bringing IGT Gaming and Everi together. Under private ownership, we believe we will be better positioned to accelerate the integration of our two organisations for the benefit of our customers and employees.”
IGT has insisted that it will change its business identity and NYSE ticker to represent itself as a standalone provider of global lottery systems.
Daniel Cohen, Partner at Apollo, added: “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. We look forward to working in partnership with all the people at IGT Gaming and Everi to propel the combined enterprise forward.”
