• Subscribe
  • Magazines
  • About
  • Contact
  • Advertise
Sunday 1 June 2025
  • zh-hant 中文
  • ja 日本語
  • en English
IAG
Advertisement
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
No Result
View All Result
IAG
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
No Result
View All Result
IAG
No Result
View All Result

GTECH, Perelman Weigh Bids for IGT

Newsdesk by Newsdesk
Mon 16 Jun 2014 at 02:53
Print Friendly, PDF & Email

Shares of International Game Technology spiked 11% in New York on Friday on news that global lottery giant GTECH and billionaire investor Ron Perelman had joined the list of suitors interested in buying the world’s largest maker of slot machines.

The increase follows the 14% jump in the stock (NYSE: IGT) recorded on 9th June, the highest for the Las Vegas-based company in five years, following a Reuters report on preliminary bids from private-equity titans Apollo Global Management, an owner of Caesars Entertainment, and Carlyle Group.

IGT had US$2.2 billion of debt at the end of March, suggesting an enterprise value approaching $6 billion. The company has hired Morgan Stanley to explore a sale and has indicated it would prefer a private-equity buyer, according to Reuters. Binding bids are due in a few weeks, the wire service said.

“A deal could make more sense for a financial buyer (perhaps someone already licensed in gaming) attracted by IGT’s massive free cash flow generation (estimated at US$300 million-plus in FY2015),” Union Gaming Research said. “In addition, such a buyer likely would have a strong view on how to extract value, fundamentally and strategically. The prospect of a strategic buyer (competitor) is far less likely in our view, primarily due to resultant leverage.”

GTECH, a subsidiary of Italy’s Lottomatica, owns gaming machine and systems-maker Spielo and the slots and systems manufacturer formerly known as Atronic. Mr Perelman controls another major global lottery provider, Scientific Games, which he chairs and which bought WMS Gaming last year and recently installed Gavin Isaacs as CEO. Mr Perelman’s interest in IGT has been expressed through his primary investment vehicle, MacAndrews & Forbes Holdings, which he wholly owns.

IGT, which is estimated to control 70% of the North American machine gaming market, has struggled in recent years as the US market flattened after the recession, dampening new and replacement sales, and re-energized competitors large and small have steadily chipped away at its dominance. The business climate internationally has been similarly challenging.

The most recent quarter saw the company lower its earnings guidance for the balance of fiscal 2014—citing lower revenue expectations in the States and “further degradation in the international currency, compliance, and importation environment”—and announced it was cutting 7% of its workforce.

Its prospects are not expected to improve in a meaningful way, according to analysts.

“A potential buyer would have to consider the weak macro environment [in the US] for equipment manufacturers and company-specific weakness,” said Union Gaming. “The macro environment for slots will continue to be challenging, with few new casino openings/expansions this year and next year not looking much better. Floor space is increasingly competitive, with smaller manufacturers growing their share. A large casino operator noted its purchase of slot product from 11 providers last year, which is nearly double the number in previous years. Additionally, e-tables are gaining floor space across the [US] landscape, further pressuring square footage.”

RelatedPosts

IGT reveals amendments to revolving credit facility and term loan agreements

IGT reports second highest quarter for product sales in its in 4Q24, releases 2025 guidance

Wed 26 Feb 2025 at 04:22
IGT unveils new multi-level progressive game Tiger and Dragon

IGT unveils new multi-level progressive game Tiger and Dragon

Tue 21 May 2024 at 05:49
Slots 2.0

Global Gaming segment drives IGT forward with Adjusted EBITDA up 8% to US$433 million in 3Q23

Wed 1 Nov 2023 at 04:26
IGT slips to 2Q20 loss on 48% global revenue decline

IGT to fully redeem remaining US$118 million in outstanding notes

Sun 29 Oct 2023 at 19:04
Load More
Tags: GTECHInternational Game TechnologyPerelman
ShareShare
Newsdesk

Newsdesk

Current Issue

Editorial – Foreigner-only casinos: Seize the day

Editorial – Foreigner-only casinos: Seize the day

by Ben Blaschke
Thu 29 May 2025 at 13:38

I was recently asked by someone working at a foreigner-only casino for my thoughts on the outlook for the Asian...

On the brink

On the brink

by Pierce Chan
Thu 29 May 2025 at 13:27

The transition period for Macau’s 11 satellite casinos is set to expire at the end of this year, after which...

A moral defense of gambling

A moral defense of gambling

by Andrew Russell
Wed 28 May 2025 at 18:19

Economist Andrew Russell explores the differences between community benefit and in-principle arguments for the existence of a legal gambling industry...

Face to face

Face to face

by Ben Blaschke
Wed 28 May 2025 at 18:08

Konami caught the eye at the recent G2E Asia show in Macau with its SYNK Vision Tables, which utilize facial...

Evolution Asia
Aristocrat
GLI
Mindslot
Mindslot
Solaire
Hann
Tecnet
Nustar
Jumbo

Related Posts

Concerned parties welcome opportunity for high-level discourse ahead of Thai Entertainment Complex Roundtable 

Concerned parties welcome opportunity for high-level discourse ahead of Thai Entertainment Complex Roundtable 

by Ben Blaschke
Sun 1 Jun 2025 at 15:46

This week’s groundbreaking Thai Entertainment Complex Roundtable (TECR) has been described by local participants as a vital opportunity for all stakeholders, including international operators and those concerned about Thai casino legislation, to work together to achieve mutually agreeable outcomes.  In...

Less than one month remaining to MGS Summit 2022

Macau GGR sets new post-COVID high of MOP$21.2 billion in May

by Ben Blaschke
Sun 1 Jun 2025 at 12:53

Macau’s casinos recorded gross gaming revenue of MOP$21.19 billion (US$2.62 billion) in May, making it the biggest month of 2025 so far but also the largest since borders reopened in January 2023. According to information from the Gaming Inspection and...

2022 Asian Gaming Power 50: Ones to watch

Controlling shareholder Ng Man Sun steps down as Chairman, CEO and Executive Director of Century Entertainment

by Newsdesk
Sun 1 Jun 2025 at 12:02

Ng Man Sun, a renowned former Macau junket figure and controlling shareholder of Hong Kong-listed gaming investor Century Entertainment International Holdings, has stepped down as the Chairman and CEO and relinquished his role as a director, the company announced Friday....

Vietnam asks PM to grant approval for US$2 billion Van Don casino development in Quang Ninh province

Vietnam asks PM to grant approval for US$2 billion Van Don casino development in Quang Ninh province

by Newsdesk
Sun 1 Jun 2025 at 11:26

Vietnam’s Ministry of Finance has reportedly submitted a proposal to the Prime Minister seeking approval to push forward with a VND51.5 trillion (US$2 billion) luxury casino-resort development in Quang Ninh province. The project is the same one previously proposed by...



IAG

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • SUBSCRIBE FREE
  • NEWSFEED
  • MAG ARTICLES
  • VIDEO
  • OPINION
  • TAGS
  • REGIONAL
  • EVENTS
  • CONSULTING
  • CONTRIBUTORS
  • MAGAZINES
  • ABOUT
  • CONTACT
  • ADVERTISE

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Subscribe
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
  • Events
  • Contributors
  • Magazines
  • Advertise
  • Contact
  • About
  • Home for G2E Asia

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • English