The Nevada Gaming Control Board granted preliminary approval for Apollo Global Management’s acquisition of IGT and Everi in a $6.3 billion all-cash deal. Known as IGT, this enterprise will be headquartered in Las Vegas, bringing together Apollo’s existing interests such as the Venetian and Palazzo. Learn more about recent acquisitions in the gaming industry.
The Strategic Merger of IGT and Everi
Apollo’s acquisition aims to create a formidable global gaming company. IGT provides a wide array of offerings from lotteries and gaming machines to sports betting, while Everi develops gaming content and systems for various operators. This venture positions IGT as a leader in North American slot machines, commanding a market share rivaling peers like Light & Wonder.
Future Growth and Market Opportunities
The Apollo-managed entity plans to leverage its experience in gaming to drive growth and enhance shareholder value. Daniel Cohen, a partner at Apollo, emphasized that taking IGT and Everi private enables long-term strategic planning, free from short-term market pressures. This strategic decision aligns with Apollo’s vision of establishing a diversified gaming technology platform.
According to the American Gaming Association, maintaining innovation through such mergers is crucial in the rapidly evolving gaming sector. The combined entities will significantly enhance their offerings, targeting both land-based and online markets.
Financial Outlook and Management Team
Under the terms, Everi shareholders receive $14.25 per share, marking a 56% premium over previous values. IGT, benefiting from substantial cash inflow, plans to reduce debt and return capital to shareholders. Nicholas Khin will oversee the initial integration, followed by Hector Fernandez, who joins later this year. The management strategy involves an equal blend of leadership from IGT, Everi, and external experts.
The merger anticipates generating $2.5 billion in revenue, underscoring the attractiveness of a recurring revenue model from diverse operations, including systems, fintech, and igaming products. Apollo commits to investing in research and development, ensuring that IGT remains at the forefront of gaming innovations.
The gaming industry’s landscape continues to shift, creating unique investment opportunities. Apollo’s moves signal confidence in the sector’s growth potential, promising more advancements on the horizon.
