After a productive Q1, IGT has announced that it is looking into its options when it comes to the brand’s Global Gaming and PlayDigital segments.
“Over the last three years, IGT has sharpened its strategic focus by reorganizing around core product verticals, monetizing non-core assets, reducing structural costs and significantly improving its credit profile,” said Marco Sala, IGT Executive Chair.“We believe the intrinsic value of IGT’s market-leading businesses and diversified cash flow profile is not currently reflected in our stock price and the timing is right to assess opportunities that may enhance value for IGT’s shareholders.”
The PlayDigital arm offers online and retail solutions for both sports betting and online casino, including the IGT PlaySports platform and online casino game aggregation and engagement tools. PlaySports recently won Sportsbook Supplier of the Year at May’s SBC Awards North America.
Both verticals experienced double-digit growth during Q1.
How the company handles these two arms is up for debate. The release noted IGT is considering everything, including a sale, a merger, or a spin-off. The ultimate goal is “to drive long-term sustainable value.”
“IGT is a global leader with deep expertise in lottery, land-based gaming, iGaming, and sports betting,” said Vince Sadusky, IGT CEO. “We remain focused on the execution of our growth objectives and multi-year goals outlined in our November 2021 Investor Day as we undertake this review and evaluation of strategic alternatives. Regardless of the outcome of this process, IGT is well-positioned to deliver on its long-term growth and profit targets.”
The company has retained Deutsche Bank, Macquarie Capital, and Mediobanca to advise on the financial side as well as Sidley Austin and White & Case as legal counsel for this strategic review.
