{"id":326311,"date":"2024-07-26T15:03:21","date_gmt":"2024-07-26T20:03:21","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=326311"},"modified":"2024-07-26T15:03:21","modified_gmt":"2024-07-26T20:03:21","slug":"apollo-surprises-with-6-3b-bid-for-everi-igt-gaming-biz","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/apollo-surprises-with-6-3b-bid-for-everi-igt-gaming-biz\/","title":{"rendered":"Apollo Surprises With $6.3B Bid for Everi, IGT Gaming Biz"},"content":{"rendered":"

Shares of Everi (NYSE: EVRI) and International Game Technology (NYSE: IGT) surged Friday after Apollo Global Management (NYSE: APO) emerged as a surprise bidder for Everi and IGT\u2019s global gaming and PlayDigital arms. The private equity firm offered $6.3 billion for those businesses.<\/p>\n

\"Everi
A slide from an Everi Holdings investor presentation. Apollo emerged as a surprise suitor for the company and IGT’s global gaming and PlayDigital units. (Image: Seeking Alpha<\/em>)<\/figcaption><\/figure>\n

In February, IGT and Everi announced a $6.2 billion deal<\/a> in which the pair of the lottery giant\u2019s units would merge with Everi. Apollo slightly topped that price in what is the largest announced acquisition this year in the gaming industry. Under the terms of the deal, Apollo will pay $4.05 billion in gross proceeds to IGT and $14.25 a share to Everi investors — a 56% premium to that stock\u2019s July 25 closing price. Rumors surfaced last September that Apollo was interested in the IGT assets.<\/p>\n

The acquisitions of IGT Gaming and Everi by the Apollo Funds are cross-conditioned. The transaction is subject to customary closing conditions, including the receipt of regulatory approvals and approval by Everi stockholders, and is expected to be completed by the end of the third quarter of 2025. IGT shareholder approval is not required for the transaction,\u201d according to a statement.<\/p><\/blockquote>\n

Everi is scheduled to release second-quarter results on Aug. 9, but due to the Apollo announcement, the slot machine manufacturer will not host an earnings conference call.\u00a0IGT will proceed with its earnings call on July 30 because it remain a publicly traded company focusing on lottery operations and sales following the Apollo transaction.<\/p>\n

Apollo Deal Appears Better for IGT Investors<\/h2>\n

In June 2023, IGT 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.<\/p>\n

\n

While the merger with Everi adequately valued those IGT businesses, some investors in the latter weren\u2019t thrilled about a planned equity distribution from Everi shareholders that would have brought unfavorable tax implications. The Apollo transaction cleans that up while allowing IGT to focus on its core lottery business.<\/p>\n<\/div>\n

\u201cPost-transaction, IGT is a better-capitalized lottery pure-play. Overall, solid lottery industry and company-specific trends continue, in our view, with potential new innovations to drive SSS ahead (potential Mega Millions price increase, etc.),\u201d wrote B. Riley analyst David Bain in a note to clients today.<\/strong><\/p>\n

When the Apollo transaction is completed, IGT will change its name and stock ticker, \u201cbecoming a premier pure play lottery business<\/a>,\u201d according to the statement.<\/p>\n

Deal Could Be Harbinger of More Gaming M&A<\/h2>\n

Apollo is familiar with the gaming device business\u00a0 as it was previously the largest investor in<\/a> PlayAGS (NYSE:AGS), which is also in the process of being acquired. The private equity firm liquidated that stake in November 2022.<\/p>\n

Bain says the deal with IGT and Everi could be a sign of more gaming industry consolidation activity to come because buyers can find targets that are more valuable than current share prices imply.<\/p>\n

\u201cWe continue to believe active M&A in the gaming industry demonstrates intrinsic values are much greater than current public valuations,\u201d added the analyst. \u201cApollo is well-known by both investors and the gaming industry, and we believe it is well-suited (and capitalized) to assist in the combination of IGT and EVRI and support the combined company\u2019s strategic initiatives. Net, we believe IGT Gaming and EVRI are stronger with Apollo.\u201d<\/strong><\/p>\n

Indeed, Apollo is familiar to gaming investors as the private equity firm is frequently tied to an array of industry takeover rumors and it currently operates the Venetian on the Las Vegas Strip as well as other wagering assets.<\/p>\n","protected":false},"excerpt":{"rendered":"

Shares of Everi (NYSE: EVRI) and International Game Technology (NYSE: IGT) surged Friday after Apollo Global Management (NYSE: APO) emerged as a surprise bidder for Everi and IGT\u2019s global gaming and PlayDigital arms. The private equity firm offered $6.3 billion for those businesses. In February, IGT and Everi announced a $6.2 billion deal in which […]<\/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],"tags":[81903,13701,81966,81890],"acf":[],"yoast_head":"\nApollo Surprises With $6.3B Bid for Everi, IGT Gaming Biz<\/title>\n<meta name=\"description\" content=\"Apollo Surprises With $6.3B Bid for Everi, IGT Gaming Biz.\" \/>\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\/apollo-surprises-with-6-3b-bid-for-everi-igt-gaming-biz\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Apollo Surprises With $6.3B Bid for Everi, IGT Gaming Biz\" \/>\n<meta property=\"og:description\" content=\"Apollo Surprises With $6.3B Bid for Everi, IGT Gaming Biz.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/apollo-surprises-with-6-3b-bid-for-everi-igt-gaming-biz\/\" \/>\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=\"2024-07-26T20:03:21+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\/apollo-surprises-with-6-3b-bid-for-everi-igt-gaming-biz\/\",\"url\":\"https:\/\/www.casino.org\/news\/apollo-surprises-with-6-3b-bid-for-everi-igt-gaming-biz\/\",\"name\":\"Apollo Surprises With $6.3B Bid for Everi, IGT Gaming Biz\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/apollo-surprises-with-6-3b-bid-for-everi-igt-gaming-biz\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/apollo-surprises-with-6-3b-bid-for-everi-igt-gaming-biz\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/everi.jpg\",\"datePublished\":\"2024-07-26T20:03:21+00:00\",\"dateModified\":\"2024-07-26T20:03:21+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Apollo Surprises With $6.3B Bid for Everi, IGT Gaming Biz.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/apollo-surprises-with-6-3b-bid-for-everi-igt-gaming-biz\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/apollo-surprises-with-6-3b-bid-for-everi-igt-gaming-biz\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/apollo-surprises-with-6-3b-bid-for-everi-igt-gaming-biz\/#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. 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