Casino tech supplier Everi to merge with IGT in $6.2B transaction

IGT Everi Merger
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IGT has agreed to a merger following a strategic review.

The gaming giant announced on Thursday that it has reached a definitive agreement to combine its Global Gaming and PlayDigital businesses with casino technology supplier Everi in a deal that values that combined businesses at $6.2 billion. As part of the transaction, IGT will separate its Global Gaming and PlayDigital segments into a taxable spin-off to IGT shareholders, which are expected to own roughly 54% of the combined company. Everi stockholders, once the deal is closed, will own roughly 46% of shares.

The deal, which is subject to regulatory approvals, has been unanimously approved by IGT and Everi’s Boards of Directors. The transaction is expected to close by early 2025.

“We are bringing together two businesses with complementary strengths that are stronger and more valuable together,” said IGT CEO Vince Sadusky. “The combination results in a comprehensive and diverse product offering, addressing more aspects of the gaming ecosystem across land-based gaming, iGaming, sports betting, and fintech.”

IGT and Everi are expecting to drive strong profits from the merger as it offers a one-stop shop for iGaming, retail casino gaming, and sports betting services. In FY204, the combined company is estimated to generate approximately $2.7 billion in pro forma revenue. The entity’s pro forma adjusted EBITDA is projected to reach $1 billion in 2024.

Merger can help improve IGT’s bottom line

IGT, which has established a presence in more than 100 jurisdictions across the world, generated $1 billion in revenue in Q3 2023. The results were flat compared to the same period the year prior. IGT did improve its operating income in Q3 2023 to $239 million, a 13% increase year-over-year. Its adjusted EBITDA grew 8% during the quarter to $433 million compared to Q3 2022. IGT will report its Q4 2023 and FY2023 results on March 12.