Just five months after it was revealed that IGT’s gaming and digital arms would merge with loyalty solutions provider Everi Holdings Inc, the newly formed entity is set to be acquired by asset management firm Apollo Global Management, Inc in a US$6.3 billion deal. Apollo is the same firm that purchased The Venetian, Palazzo and Venetian Expo from Las Vegas Sands for US$6.25 billion in 2022.
The all-cash transaction was announced late Friday, involving a newly formed holding company owned by funds managed by affiliates of Apollo, IGT said.
Under the terms of the new agreements, Everi stockholders will receive US$14.25 per share in cash, representing a 56% premium over the company’s closing share price on 25 July, while IGT will receive US$4.05 billion in gross cash proceeds.
This after IGT and Everi announced on 29 February that they had entered into definitive agreements by which IGT would separate the IGT Gaming business by way of a taxable spin-off to IGT shareholders and then immediately combine with Everi to create a new global gaming and fintech enterprise.
Under the terms of this week’s agreements, the Apollo Funds will now acquire IGT Gaming and Everi which will become privately-owned companies as part of one combined enterprise.
IGT’s majority shareholder, De Agostini S.p.A, will take a minority equity investment in the combined enterprise, which has already been unanimously approved by a special committee of the IGT Board of Directors and by all members of the Everi Board of Directors.
“Our new agreement represents a positive evolution of our previously announced transaction with Everi and a successful culmination of the strategic review process that IGT launched last year,” said IGT’s CEO, Vince Sadusky.
“With the Apollo Funds, we have found a partner that recognizes the strength of IGT Gaming, the value of our talent and our position in the industry. This transaction will allow IGT Gaming to continue to invest in and enhance its growing core segments while providing customers with a more comprehensive portfolio of offerings.
“After the closing of this transaction, IGT’s shareholders will continue to own 100% 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 optimized capital structure to drive long-term shareholder value.”
Randy Taylor, Everi President and CEO, added, “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 organizations for the benefit of our customers and employees.”
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