Integrated Gaming Technology (IGT) Combines with Everi for a Unified Approach in Gaming and Financial Technology
IGT and Everi Merge to Create a Global Gaming Powerhouse
In a significant move, International Game Technology (IGT) and Everi Holdings Inc. have agreed to merge their Global Gaming and PlayDigital businesses, creating a global leader in land-based and digital gaming, fintech, and systems. The transaction, valued at approximately $6.2 billion, is expected to conclude in late 2024 or early 2025, subject to regulatory approvals, shareholder endorsement, and adherence to customary closing prerequisites.
The strategic rationale behind this merger is to create a combined entity exclusively focused on gaming technology and digital solutions. IGT, post-transaction, will become a pure-play lottery business, improving strategic clarity and operational focus. Meanwhile, Everi, enriched by the merged IGT gaming assets, will have a stronger market position in gaming technology and digital offerings.
The merged company will offer a comprehensive and diverse product portfolio, including land-based gaming, iGaming, sports betting, and fintech. With an installed base of approximately 70,000 Electronic Gaming Machines (EGMs), the combined company is poised to address more aspects of the gaming ecosystem.
The transaction is anticipated to deliver approximately $85 million of identified cost savings. In the second year following the closing, the combined company is expected to generate over $800 million of annual Adjusted cash flow, including realized synergies. The combined company's projected pro forma 2024 revenue is approximately $2.7 billion, and the 2024 Adjusted EBITDA is projected to be around $1 billion.
The combined company will have a projected pro forma 3.2-3.4x net debt to 2024 Adjusted EBITDA leverage ratio (including run-rate cost synergies) with a path to rapid de-leveraging. Upon closing, IGT shareholders are expected to own around 54% of the combined company, while Everi stockholders will own about 46%.
The creation of separate gaming and lottery companies, each with experienced management teams and simplified business models, better positions each company to service customers and create significant value for stakeholders. The separated IGT's Global Gaming and PlayDigital businesses will merge with Everi, forming a comprehensive global gaming and fintech enterprise.
The merger anticipates facilitating the separation of IGT's Global Gaming and PlayDigital businesses from its Global Lottery business, resulting in a pure-play global lottery business for IGT. The transaction has received unanimous approval from both IGT and Everi Boards of Directors.
In summary, the merger enables IGT to focus on lottery while creating a larger, innovation-driven gaming technology business with Everi, leveraging complementary strengths and aiming for enhanced competitive scale and operational agility. The combined company is expected to better compete in a dynamic and evolving gaming environment, positioning itself for growth and improved shareholder value through streamlined corporate structures and a focused go-to-market approach.
Read also:
- Tesla is reportedly staying away from the solid-state battery trend, as suggested by indications from CATL and Panasonic.
- Review of the 2025 Lamborghini Revuelto: Blazing Beasts on Wheels
- Tech giant Apple debuts sports app integrating betting odds provided by DraftKings
- California links 100,000 home storage batteries through its Virtual Power Plant program.
%20Combines%20with%20Everi%20for%20a%20Unified%20Approach%20in%20Gaming%20and%20Financial%20Technology){kind=link}