International Game Technology PLC (IGT) and Everi Holdings Inc. have announced a definitive agreement for their simultaneous acquisition by a newly formed holding company owned by funds managed by affiliates of Apollo Global Management, Inc. The all-cash transaction values the acquired businesses at approximately $6.3 billion.

In February this year, IGT and Everi had entered into agreements for IGT to separate its Gaming & Digital business (IGT Gaming) via a taxable spin-off to IGT shareholders, and then immediately combine this business with Everi. Under the new agreements, the Apollo Funds will acquire IGT Gaming and Everi. Following the closing, IGT Gaming and Everi will be privately owned companies that are part of one combined enterprise.

How IGT and Everi will integrate with Apollo

Apollo Global Management has plans to integrate IGT and Everi by forming a combined enterprise under its management. The deal involves the acquisition of IGT’s Gaming & Digital business and Everi in an all-cash transaction.

The integration process will see Apollo spin off IGT’s gaming business and merge it with Everi, a casino technology and payments specialist supplier. This strategic move aims to create a stronger player in the global gaming, FinTech, and digital industry.

The transaction, subject to regulatory approvals and approval by Everi stockholders, is expected to be completed by the end of the third quarter of 2025. It’s important to note that IGT shareholders’ approval is not required for the transaction.

This integration is expected to enhance the core segments of IGT Gaming, providing customers with a more comprehensive portfolio of offerings. It also aims to provide significant value to Everi’s stockholders as they move forward with Apollo Funds as their partner.

Shareholders and future prospects

Everi stockholders will receive $14.25 per share in cash, a 56 percent premium over Everi’s closing share price on 25 July, 2024. IGT will receive $4.05 billion of gross cash proceeds for IGT Gaming, with significant portions of the cash proceeds expected to be used to repay debt and returned to shareholders.

De Agostini S.p.A., the majority shareholder of IGT, has committed to make a minority equity investment in the combined enterprise at the closing of the transaction. Upon completion of the sale of IGT Gaming to the Apollo Funds, IGT will change its name and stock ticker symbol, becoming a premier pure play lottery business.

The transaction with the Apollo Funds has been unanimously approved by a special committee of the IGT Board of Directors and unanimously approved by all members of the Everi Board of Directors. The previous transaction agreements between IGT and Everi entered into on 28 February 2024 have been terminated.

Vince Sadusky, IGT PLC CEO, (pictured above), said, “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. 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.”

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.”

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