{"id":312459,"date":"2024-02-29T12:20:00","date_gmt":"2024-02-29T18:20:00","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=312459"},"modified":"2024-05-08T22:30:36","modified_gmt":"2024-05-09T03:30:36","slug":"igt-global-gaming-playdigital-units-merging-with-everi","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/igt-global-gaming-playdigital-units-merging-with-everi\/","title":{"rendered":"IGT Global Gaming, PlayDigital Combining with Everi in $6.2B Deal"},"content":{"rendered":"

International Game Technology (NYSE: IGT) announced a long-awaited move for its global gaming and PlayDigital units, telling investors Thursday that those businesses will merge with Everi (NYSE: EVRI) in a $6.2 billion deal.<\/p>\n

\"Everi
A slide from an Everi Holdings investor presentation. The company is merging with IGT’s global gaming and PlayDigital units in a $6.2 billion deal. (Image: Seeking Alpha<\/em>)<\/figcaption><\/figure>\n

Under the terms of the transaction, IGT investors will own 54% of the new company, while Everi shareholders will control the remainder. IGT CEO Vince Sandusky will assume the same role at the newly formed entity, with Everi Executive Chairman Michael Rumbolz becoming chairman of the board.<\/p>\n

Last June, the company announced it was considering strategic alternatives<\/a> for its global gaming and PlayDigital units. At that time, it was expected that IGT\u2019s slot machine business alone could fetch $4 billion to $5 billion in a sale. Commanding $6.2 billion for the global gaming and PlayDigital arms unlocks value for IGT investors<\/a>, as highlighted by the fact that the stock entered Thursday with a market capitalization of $5.34 billion.<\/p>\n

The transaction will be executed through a series of steps pursuant to which IGT will spin off a subsidiary owning its Global Gaming and PlayDigital businesses to IGT shareholders. That entity will then combine with Everi, with IGT shareholders receiving shares of Everi common stock and Everi continuing as the parent company. IGT shareholders will receive approximately 103.4 million Everi shares, resulting in an approximate 54% ownership interest in the combined company with existing Everi stockholders owning the balance,\u201d<\/strong> according to a statement issued by the companies.<\/p><\/blockquote>\n

The deal is expected to close late this year or in early 2025. Following closure, the combined company will retain the IGT name and trade under that ticker on the New York Stock Exchange (NYSE). The new firm will be based in Las Vegas, which is Everi\u2019s current home.<\/p>\n

Benefits of IGT\/Everi Marriage<\/h2>\n

IGT is known as the maker of the popular Wheel of Fortune<\/em> slot machines. But the marriage with Everi not only bolsters its slot operations and scale, but brings fintech, iGaming, and sports betting<\/a> exposure under a single, vertically integrated umbrella.<\/p>\n

The new IGT could generate 2024 sales of $2.7 billion on earnings before interest, taxes, depreciation, and amortization (EBITDA) of approximately $1 billion. The deal could create $85 million in savings and help the combined entity notch $800 million in annual free cash flow in the second year post-closing.<\/p>\n

\n

The combined company is taking on $2.6 billion in debt, which will be distributed to IGT investors. It\u2019s expected that the new firm will have 2024 net debt\/EBITDA of 3.2x to 3.4x, but \u201ca path to rapid de-leveraging\u201d could be realized. One analyst said it\u2019s possible Everi could draw takeover offers from other suitors looking for North American slots exposure.<\/p>\n<\/div>\n

\u201cWe do question whether the announcement could lead to a competitive takeout offer for EVRI (unlikely for IGT, given a thorough process was just run),\u201d noted Stifel analyst Jeffrey Stantial. \u201cPrivate equity has demonstrated interest in gaming payments given industry-specific moat, while EVRI offers a more digestible option vs. IGT for international manufacturers (e.g. Novomatic) or digital pure-plays (Evolution; Games Global) looking to establish presence in US.\u201d<\/p>\n

IGT Lottery Thesis Cleaned Up<\/h2>\n

With the spin-offs of IGT’s Global Gaming and PlayDigital businesses, the company\u2019s highly profitable through underappreciated lottery unit<\/a> might generate more attention in the investment community. Lottery accounts for 75% of IGT\u2019s pro forma earnings.<\/p>\n

\n

The company\u2019s lottery arm will become a \u201cpremier pure play lottery business with a diversified contract mix, the broadest global reach, and a strong presence across markets,\u201d according to the statement.<\/p>\n<\/div>\n

Assuming the transaction with Everi proceeds, the IGT lottery business will take a new name and trade on the NYSE under another ticker.<\/p>\n","protected":false},"excerpt":{"rendered":"

International Game Technology (NYSE: IGT) announced a long-awaited move for its global gaming and PlayDigital units, telling investors Thursday that those businesses will merge with Everi (NYSE: EVRI) in a $6.2 billion deal. Under the terms of the transaction, IGT investors will own 54% of the new company, while Everi shareholders will control the remainder. […]<\/p>\n","protected":false},"author":46,"featured_media":227748,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,13699,32093,69293,16693],"tags":[81903,13701,81966,81890,82041],"acf":[],"yoast_head":"\nIGT Global Gaming, PlayDigital Units Merging With Everi<\/title>\n<meta name=\"description\" content=\"IGT Global Gaming, PlayDigital Units Combining with Everi in $6.2 Billion Dollar Deal.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/igt-global-gaming-playdigital-units-merging-with-everi\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"IGT Global Gaming, PlayDigital Units Merging With Everi\" \/>\n<meta property=\"og:description\" content=\"IGT Global Gaming, PlayDigital Units Combining with Everi in $6.2 Billion Dollar Deal.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/igt-global-gaming-playdigital-units-merging-with-everi\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2024-02-29T18:20:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-05-09T03:30:36+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/everi.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"960\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/igt-global-gaming-playdigital-units-merging-with-everi\/\",\"url\":\"https:\/\/www.casino.org\/news\/igt-global-gaming-playdigital-units-merging-with-everi\/\",\"name\":\"IGT Global Gaming, PlayDigital Units Merging With Everi\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/igt-global-gaming-playdigital-units-merging-with-everi\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/igt-global-gaming-playdigital-units-merging-with-everi\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/everi.jpg\",\"datePublished\":\"2024-02-29T18:20:00+00:00\",\"dateModified\":\"2024-05-09T03:30:36+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"IGT Global Gaming, PlayDigital Units Combining with Everi in $6.2 Billion Dollar Deal.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/igt-global-gaming-playdigital-units-merging-with-everi\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/igt-global-gaming-playdigital-units-merging-with-everi\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/igt-global-gaming-playdigital-units-merging-with-everi\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/everi.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/everi.jpg\",\"width\":1280,\"height\":960,\"caption\":\"A slide from an Everi Holdings investor presentation. Deutsche Bank is rumored to be leading financing for Apollo's takeover of Everi and two IGT units. (Image: Seeking Alpha)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/igt-global-gaming-playdigital-units-merging-with-everi\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Financial\",\"item\":\"https:\/\/www.casino.org\/news\/financial\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"IGT Global Gaming, PlayDigital Combining with Everi in $6.2B Deal\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"IGT Global Gaming, PlayDigital Units Merging With Everi","description":"IGT Global Gaming, PlayDigital Units Combining with Everi in $6.2 Billion Dollar Deal.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.casino.org\/news\/igt-global-gaming-playdigital-units-merging-with-everi\/","og_locale":"en_US","og_type":"article","og_title":"IGT Global Gaming, PlayDigital Units Merging With Everi","og_description":"IGT Global Gaming, PlayDigital Units Combining with Everi in $6.2 Billion Dollar Deal.","og_url":"https:\/\/www.casino.org\/news\/igt-global-gaming-playdigital-units-merging-with-everi\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2024-02-29T18:20:00+00:00","article_modified_time":"2024-05-09T03:30:36+00:00","og_image":[{"width":1280,"height":960,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/everi.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/igt-global-gaming-playdigital-units-merging-with-everi\/","url":"https:\/\/www.casino.org\/news\/igt-global-gaming-playdigital-units-merging-with-everi\/","name":"IGT Global Gaming, PlayDigital Units Merging With Everi","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/igt-global-gaming-playdigital-units-merging-with-everi\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/igt-global-gaming-playdigital-units-merging-with-everi\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/everi.jpg","datePublished":"2024-02-29T18:20:00+00:00","dateModified":"2024-05-09T03:30:36+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"IGT Global Gaming, PlayDigital Units Combining with Everi in $6.2 Billion Dollar Deal.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/igt-global-gaming-playdigital-units-merging-with-everi\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/igt-global-gaming-playdigital-units-merging-with-everi\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/igt-global-gaming-playdigital-units-merging-with-everi\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/everi.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/everi.jpg","width":1280,"height":960,"caption":"A slide from an Everi Holdings investor presentation. Deutsche Bank is rumored to be leading financing for Apollo's takeover of Everi and two IGT units. (Image: Seeking Alpha)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/igt-global-gaming-playdigital-units-merging-with-everi\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Financial","item":"https:\/\/www.casino.org\/news\/financial\/"},{"@type":"ListItem","position":3,"name":"IGT Global Gaming, PlayDigital Combining with Everi in $6.2B Deal"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.","sameAs":["https:\/\/muckrack.com\/todd-shriber","https:\/\/www.linkedin.com\/in\/toddshriber\/","https:\/\/x.com\/etfgodfather"],"url":"https:\/\/www.casino.org\/news\/author\/todd-shriber\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/312459"}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=312459"}],"version-history":[{"count":5,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/312459\/revisions"}],"predecessor-version":[{"id":319507,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/312459\/revisions\/319507"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/227748"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=312459"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=312459"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=312459"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}