(Telestock) – International Game Technology and Everi Holdings have signed definitive agreements under which IGT and Everi’s Gaming and Digital business lines will be jointly purchased from a newly established holding company owned by funds managed by Apollo Global Management in a’all-cash operation which reflects an overall value of approximately $6.3 billion for purchased companies.
On February 29, 2024, IGT and Everi announced that they had entered into definitive agreements under which IGT Gaming would be spun off to IGT shareholders in a taxable spin-off and would immediately merge with Everi. Under the new agreements, funds managed by Apollo will acquire IGT Gaming and Everi. Upon closing, IGT Gaming and Everi will continue to operate under a only unlisted group.
Under the new agreements, Everi shareholders will receive $14.25 per share in cash, representing a 56% premium compared to the closing price on July 25, 2024. IGT will receive gross consideration of $4.05 billion in cash for IGT Gaming. IGT expects to use a significant portion of the consideration to repay debt and to compensate its shareholders.
From Augustinithe majority shareholder of IGT, has undertaken to carry out a minority investment in the capital of the company resulting from the business combination upon completion of the transaction.
IGT to change its name and the acronym on the stock exchange and will become a pure lottery operator.
“We are very satisfied with the agreement reached with IGT and Everi, thanks to which we will create a leading operator in the sector, with diversified solutions and well positioned in the entire gaming ecosystem – commented Daniel Cohen, Partner at Apollo – As a long-time investor in the gaming and entertainment industry, we have long appreciated both companies and the great talent of their teams.”
For IGT, Macquarie Capital, Deutsche Bank And Mediobanca they provided financial advice. Global Leisure Partners acted as the exclusive financial advisor to Everi, while Houlihan Lokey provided additional financial advice to the Board. Deutsche Bank and Macquarie Capital underwrote the financing commitments for the transaction.