New Deal Will Take Everi and IGT Private
Apollo Global Management have recently verified that Apollo Funds have come to an agreement for an all-cash deal to acquire Everi and IGT's Gaming and Digital business for a staggering $6.3 billion. Once the deal is completed and everyone is on board, both entities will proceed as private businesses within a larger entity.
The companies explained that while the deal gets finalized, the lottery business will continue to be a publicly traded entity but will receive a new ticker symbol. The lottery business is going to operate outside the newly established enterprise. Back in February 2024, IGT and Everi made headlines when the two companies made the decision to merge their operations. This resulted in a value price of $6.2 billion for the new entity.
It was during this time when the two companies came to an agreement to merge their gaming businesses while spinning off the lottery arm. However, this agreement is now superseded with the buyout bid from Apollo Funds who is set to acquire the assets instead.
Fundamentally, the new agreement proposes to take Everi and IGT private. However, the prospect of a buyout has already had an impact on the company's valuations, with Everi registering a 40% jump while IGT's stock witnessed a 20% gain as of closing time on 26 July 2024.
Deal Needs to Pass Regulatory and Shareholder Scrutiny
At the moment, the deal is hinging on several factors. Firstly, there are shareholders at Everi who needs to take a vote. When the deal is finalized, it's estimated to generate a $1.2 billion payout for Reuters and shareholders. This will also include a $1 billion in debt that will push the valuation to a jaw-dropping $2.2 billion.
IGT is expecting a payout of $4.05 billion that the company will use to pay off debt. The deal also needs to undergo regulatory scrutiny before its finalized. If everything goes according to plan, the deal is set to be completed during the third quarter of 2025. If everything goes well, the newly established combined enterprise is going to operate from Las Vegas, Nevada.
How IGT Slots Will be Affected by the Deal
This is undoubtedly one of the biggest mergers the slot machine industry has witnessed in the past decade. In 2023, Apollo showed interest in acquiring the gaming and slot machine operations of IGT. The acquisition will include ownership of the Wheel of Fortune slot brand along with the digital business of IGT, including its sportsbook management operations and sports betting platform.
Once the deal is completed, IGT Gaming is going to transform into a pure-play, global lottery corporation while changing its stock ticker symbol and name. IGT sees this deal as a chance to supercharge their growth, streamline operations, and deliver an even better experience to customers and employees alike. As for IGT slots, we expect players to still have access to its long list of titles. However, we don't expect new games from the company going forward. However, time will tell how Apollo Funds will handle its slot machine operations in 2025.
