Global gaming manufacturer and distributor International Game Technology (IGT) has announced the signing of an agreement to sell its social casino subsidiary, Double Down Interactive, to an affiliate of DoubleU Games Co Ltd – a leading global social casino operator based in Seoul, South Korea.
The transaction establishes a new multi-year strategic partnership between IGT and DoubleU Games to provide innovative player experiences in the social casino market worldwide.
The deal will net IGT US$825 million, which represents 10.5 times DoubleDown’s full-year 2016 Adjusted EBITDA. Proceeds from the transaction will be used for general corporate purposes, including debt reduction.
“Since acquiring DoubleDown in 2012, IGT has grown it into one of the largest and most successful brands in the North American social casino market,” IGT’s CEO, Marco Sala. “After several years of strong, organic growth and increasingly attractive valuation levels, the time is right for us to maximize the value of this asset for our shareholders. We will continue participating in the growth of the social casino market through our multi-year, strategic partnership with DoubleU Games.”
Upon the closing of the sale, the parties will enter into a game development, distribution and services agreement which will enable DoubleU Games to offer IGT’s extensive casino game library on DoubleU Games’ combined social casino platforms, in exchange for ongoing royalties to IGT.
The sale has been approved by the Board of Directors of IGT and the necessary governance body of DoubleU Games, and is subject to customary closing conditions, including regulatory approvals. The sale is anticipated to be completed in the second quarter of 2017.
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