PROVIDENCE – IGT Gaming, along with Everi Holdings Inc., announced on Friday they are being acquired by private equity firm Apollo Global Management Inc. in an all-cash transaction valued at $6.3 billion.
International Game Technology PLC
will receive $4.05 billion in cash for its digital and gaming business, while Everi shareholders will receive $14.25 per share in cash, 56% over its closing price on Thursday.
In February, IGT and Everi entered into definitive agreements in which IGT would separate the IGT Gaming business by way of a taxable spinoff to IGT shareholders and then immediately combine such business with Everi.
Under the acquisition with Apollo, IGT Gaming and Everi will be privately owned companies that are part of one combined enterprise when the deal is completed. Also, IGT will change its name and stock ticker symbol, becoming what it called in a news release a "pure play lottery business."
IGT currently has a three-year deal with R.I. Lottery to run the state agency’s sports betting app and a 20-year contract to be the state’s exclusive supplier of scratch tickets, lottery tickets, iLottery games and slot machine technology.
Lottery Director Marc Furcolo told Providence Business News that IGT's deals with both the state and lottery will not be affected.
IGT Global Solutions Chairperson Bob Vincent told PBN there will be minimal disruption in Rhode Island.
"We intend to keep our commitment that's under the master contract we have with the state," Vincent said. "That includes a number of jobs, payroll, as well as investments we agreed to make under that contract."
On Thursday, Bally’s Corp. announced it agreed accept a buyout offer from hedge fund Standard General L.P. in a deal that values the casino operator at $4.6 billion.
Standard General, a New York-based hedge fund operator that already owned a 23% stake in Bally’s, will acquire the remaining shares at $18.25 per share, a 35% premium to Wednesday’s closing price. The price represents a 71% premium over the company’s 30-day volume-weighted average price per share, as of March 8.
Soo Kim, managing partner of Standard General, is also chairman of the Bally’s board of directors.
Standard General will merge Bally’s into its regional casino chain, The Queen Casino & Entertainment, when the deal closes which is expected in the first half of 2025.
Bally’s also has a 20-year deal with the state to operate legal gambling in partnership with IGT.
(UPDATE: Adds comment from IGT Global Solutions in seventh and eighth paragraphs.)
