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IGT to Merge Global Gaming and PlayDigital with Everi

IGT to Merge Global Gaming and PlayDigital with Everi

M&A

International Game Technology (IGT) has announced plans to merge its Global Gaming and PlayDigital businesses with Everi, creating a robust and diversified global enterprise poised for growth.


In this strategic move, IGT will spin off its Global Gaming and PlayDigital segments, which will then merge with Everi. Post-merger, IGT shareholders are expected to hold approximately 54% of the shares in the combined entity, with Everi stockholders owning the remaining 46%.

The merger, valued at $6.2 billion based on enterprise value, has received unanimous approval from the boards of directors of both companies. The transaction is anticipated to conclude either later this year or in early 2025.


Upon completion, Everi will undergo a rebranding, adopting the name International Game Technology Inc. and trading on the New York Stock Exchange under the ticker IGT.

Marco Sala, Executive Chair of IGT’s board, expressed confidence in the merger, emphasizing the synergy between the two companies: "The transaction will combine two robust gaming platforms with complementary capabilities, geographic footprints, and enhanced growth opportunities."


Vince Sadusky, CEO of IGT, is set to lead the combined entity, with Michael Rumbolz, Executive Chairman of Everi, assuming the role of Chairman of the Board of Directors.

The merger aims to create a comprehensive gaming solutions provider, offering a wide array of products spanning land-based gaming, iGaming, sports betting, and fintech. It is projected to generate an estimated adjusted EBITDA of $1 billion for 2024, with around $85 million in cost savings.


The strategic benefits of the merger include a focus on global lottery operations, leveraging synergies in intellectual property portfolios, and expanding market reach through enhanced sales and distribution networks.


Financing for the merger will be facilitated by Deutsche Bank and Macquarie Capital, committing $3.7 billion, along with a $500 million revolver. The deal is expected to create over $800 million in annual adjusted cash flow by the second year and maintain a projected pro forma 3.2-3.4x net debt to adjusted EBITDA leverage ratio.


Overall, the merger between IGT and Everi is poised to create a powerhouse in the gaming industry, capitalizing on complementary strengths to drive growth and innovation in the evolving global gaming landscape.



Image License: Unsplash.com; Free to use; Author: Scott Webb;

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