In a move that has sent ripples through the gaming industry, private equity giant Apollo Global Management has announced a sweeping $6.3 billion acquisition of two major players: International Game Technology (IGT) and Everi Holdings. This bold maneuver, revealed on July 28, 2024, marks a significant shift in the sector’s dynamics and underscores Apollo’s growing influence in the gaming and entertainment sphere.
The Deal at a Glance
Apollo’s all-cash offer brings together IGT’s Gaming & Digital division with Everi Holdings under a new, privately-held entity. The transaction, which has received unanimous approval from both companies’ boards, is structured as a complex series of moves. IGT will spin off its Gaming & Digital business, merging it with Everi. Subsequently, Apollo Funds will acquire the merged entity. As part of the deal, Everi stockholders will receive $14.25 per share, representing a substantial 56% premium. Meanwhile, IGT stands to net $4.05 billion in gross cash proceeds from the sale.
Strategic Implications
This acquisition represents more than just a financial transaction; it’s a strategic realignment that promises to reshape the competitive landscape. Post-deal, IGT will undergo a significant transformation, rebranding and focusing exclusively on its Global Lottery business. This move positions IGT as a pure-play lottery powerhouse in the industry.
The merger of IGT’s Gaming & Digital arm with Everi is expected to drive innovation and expand market reach in the gaming technology sector. By combining their strengths, the new entity aims to create synergies that will enhance their competitive edge and accelerate growth.
For Apollo, this deal further cements its presence in the gaming industry. It follows the firm’s previous $6.25 billion acquisition of The Venetian, Palazzo, and Venetian Expo in 2022, demonstrating Apollo’s continued commitment to and confidence in the gaming and entertainment sectors.
Leadership Perspectives
Key executives have expressed optimism about the deal’s potential. Vince Sadusky, IGT’s CEO, views the transaction as a strategic advancement, enabling focused investment in core segments. He believes this move will ensure long-term success for IGT’s Global Lottery business while allowing the Gaming & Digital division to thrive under new ownership.
Randy Taylor, Everi’s President and CEO, emphasizes the value creation for shareholders and the enhanced market leadership opportunities that will arise from the combination with IGT’s Gaming division. Taylor sees the merger as a pathway to accelerated growth and innovation in their core markets.
Daniel Cohen, Partner at Apollo, highlighted the combination’s potential to capitalize on growth opportunities in the sector. Cohen expressed enthusiasm about bringing together two industry leaders, underscoring Apollo’s commitment to the gaming and leisure sector.
