Apollo Funds to acquire IGT's Gaming and Digital business and Everi in $6.3 billion deal

International Game Technology (IGT) and Everi on Friday announced the simultaneous acquisition of IGT's Gaming and Digital business (IGT Gaming) and Everi by a newly formed holding company owned by affiliates of Apollo Global Management. The all-cash transaction values the combined businesses at about $6.3 billion.

On February 28, 2024, IGT and Everi entered into agreements pursuant to which IGT would separate the IGT Gaming business by way of a taxable spin-off to IGT shareholders and then immediately combine the business with Everi. However, these agreements are now terminated.

As per the new agreements, the Apollo Funds will acquire IGT Gaming and Everi, and the two entities will operate as privately owned within a single enterprise post-transaction. 

Under the deal, Everi stockholders will receive $14.25 per share in cash, representing a 56% premium over Everi's closing share price on July 25, 2024. IGT will receive $4.05 billion in gross cash proceeds, with plans to use significant portions to repay debt and return capital to shareholders.

De Agostini S.p.A., IGT’s majority shareholder, will make a minority equity investment in the combined enterprise at closing. Upon completing the sale of IGT Gaming, IGT will change its name and stock ticker symbol, and rebrand as a premier pure-play lottery business. 

The transaction has received unanimous approval from both IGT's special committee of the Board of Directors and Everi's Board of Directors. Subject to customary closing conditions, including regulatory approvals and Everi stockholder approval, the transaction is expected to close by the end of Q3 2025.

IGT CEO Vince Sadusky said: "Our new agreement represents a positive evolution of our previously announced transaction with Everi and a successful culmination of the strategic review process that IGT launched last year."

Sadusky said that partnering with Apollo Funds allows IGT Gaming to invest in and enhance its core segments while providing customers with a comprehensive portfolio. Post-transaction, IGT will focus on its Global Lottery business, optimized for long-term success, he added.

Everi President and CEO Randy Taylor noted: "Apollo is a respected investment firm with a strong track record in the gaming sector, and they recognize the value of our business and see significant potential in bringing IGT Gaming and Everi together. Under private ownership, we believe we will be better positioned to accelerate the integration of our two organizations for the benefit of our customers and employees."

Daniel Cohen, Partner at Apollo, said: "We are excited to reach this agreement with IGT and Everi, which establishes a leading, diversified solutions provider that is well positioned across the entire gaming ecosystem. As an active investor in the gaming and leisure sector for many years, we have long admired both companies and their highly talented teams." 

Leadership changes will include IGT CEO Vince Sadusky overseeing the separation and continuing to lead the lottery-focused company post-closing. Fabio Celadon of IGT will serve as CFO, and Mark Labay of Everi will assume the role of Chief Integration Officer of the combined enterprise, which will be headquartered in Las Vegas. Everi's common stock will be delisted from the NYSE following the transaction.