Leading fintech and loyalty solutions provider Everi Holdings Inc will merge with the Global Gaming and PlayDigital businesses of gaming giant IGT under a new multi-billion dollar deal, the two companies have announced.
In a statement issued overnight, the definitive agreement will see IGT separate its Global Gaming and PlayDigital businesses by way of a taxable spin-off to IGT shareholders, then immediately combine these businesses with Everi to create what they describe as a comprehensive and diverse global gaming and fintech enterprise.
At closing, it is expected that IGT shareholders will own approximately 54% and Everi stockholders 46% of the shares in the combined company. The transaction has been approved unanimously by all voting members of the IGT Board of Directors and Everi Board of Directors, with the value of the combined businesses estimated at US$6.2 billion on an enterprise value basis.
The new entity will be helmed by current IGT CEO Vince Sadusky, with executives from both companies in key leadership roles, they announced, while Everi Executive Chairman Michael Rumbolz will serve as Chairman of the Board of Directors of the combined company.
This will leave IGT’s Global Lottery business to operate as a “pure play” global lottery player.
“As previously announced, IGT’s Board of Directors embarked on a review of strategic alternatives for our Global Gaming and PlayDigital businesses as a way to unlock the intrinsic value of our portfolio of industry-leading assets,” said Marco Sala, IGT Executive Chair of the Board.
“The transaction announced today is a key milestone in that process. The transaction will combine two robust gaming platforms with complementary capabilities, geographic footprints, and enhanced growth opportunities. It also facilitates the separation of IGT’s Global Gaming and PlayDigital businesses from our Global Lottery business, resulting in a pure play global lottery business.
“After closing, IGT’s shareholders will continue to own one hundred percent of IGT’s Global Lottery business, which is positioned for long-term success, and will own a majority of a combined company that offers global gaming, digital and fintech.”
IGT and Everi said the newly created entity is expected to generate pro forma 2024 revenue of around US$2.7 billion and projected pro forma 2024 Adjusted EBITDA of around US$1 billion
The transaction is expected to close in late 2024 or early 2025, at which time Everi will change its name to International Game Technology, Inc and trade on the New York Stock Exchange under the ticker IGT.
