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IGT to pay down debt after selling off Italian B2C businesses for US$1.15 billion

IGT is the global leader in gaming. We enable players to experience their favorite games across all channels and regulated segments, from Gaming Machines and Lotteries to Interactive and Social Gaming. Leveraging a wealth of premium content, substantial investment in innovation, in-depth customer intelligence, operational expertise and leading-edge technology, our gaming solutions anticipate the demands of consumers wherever they decide to play. We have a well-established local presence and relationships with governments and regulators in more than 100 countries around the world, and create value by adhering to the highest standards of service, integrity, and responsibility. IGT has more than 13,000 employees. For more information, please visit www.merger.igt.com.

Global gaming giant International Game Technology (IGT) has signed a definitive agreement to sell 100% of the share capital of its Italian B2C gaming machine, sports betting and digital gaming businesses for €950 million (US$1.15 billion).

The agreement will see IGT offload its entire interest in Lottomatica Videolot Rete S.p.A. and Lottomatica Scommesse S.r.l to Gamenet Group S.p.A, described as a subsidiary of funds managed by an affiliate of investment manager Apollo Global Management, Inc.

According to a Monday announcement by IGT, the €950 million sale price will include €725 million (US$879.5 million) payable at closing, €100 million (US$121.3 million) on 31 December 2021and the remaining €125 million (US$151.6 million) on 30 September 2022, with the proceeds to be used to pay down debt.

IGT recently reported net debt totaling US$7.24 billion as of 30 September 2020.

“The transaction enables IGT to monetize its leadership positions in the Italian B2C gaming machine, sports betting and digital spaces at an attractive multiple to comparable Italian transactions, providing us with enhanced financial flexibility,” said IGT’s CEO Marco Sala, noting that the Italian businesses generated Adjusted EBITDA of around €207 million (US$251.1 million) in 2019.

“Aligning with our recent reorganization, the favorable rebalancing of our business and geographic mix reframes and simplifies our priorities while improving the company’s future profit margin, cash flow generation and debt profile.”

It is expected that the transaction will close in early 2021 pending regulatory approvals.

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