IGT And Everi Combine Assets Under Apollo’s $6.3 Billion Acquisition

In another major consolidation within the gaming industry, International Game Technology PLC (IGT) and Everi Holdings Inc. have signed definitive agreements to combine their assets in a newly formed holding company.

This company will be owned by funds managed by affiliates of Apollo Global Management, Inc. The all-cash transaction values the combined businesses at approximately $6.3 billion.

This strategic move follows closely on the heels of another substantial merger in the industry: Bally’s Corp’s recent agreement to be fully acquired by its largest shareholder, Standard General. This trend of consolidation underscores a period of dynamic transformation in the gaming and entertainment industries.

On Feb. 29, IGT and Everi disclosed their plans to merge IGT’s gaming division with Everi following a spin-off of IGT Gaming to its shareholders. However, under the newly inked agreements, the Apollo Funds will directly acquire IGT Gaming and Everi simultaneously. Once the deal closes, both IGT Gaming and Everi will operate as privately held companies under a unified enterprise.

Big win for shareholders

Everi stockholders are set to benefit significantly from this acquisition, receiving $14.25 per share in cash. This offer represents a 56% premium over Everi’s closing share price on July 25. For IGT, the transaction brings $4.05 billion in gross cash proceeds. IGT plans to use these funds to repay debt and return capital to shareholders, setting the stage for a more focused business strategy.

The majority shareholder of IGT, De Agostini S.p.A., an Italian investment company, has committed to making a minority equity investment in the combined entity.

Upon completion of the sale to Apollo Funds, IGT will rebrand and adopt a new stock ticker symbol and focus more energies on its global lottery business.

The deal has received unanimous approval from a special committee of IGT’s Board of Directors and from all members of Everi’s Board of Directors. In doing so, they terminated the prior agreement between IGT and Everi from February.

Everyone’s on board

IGT CEO Vince Sadusky expressed optimism about the new agreement.

“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. “This transaction will allow IGT Gaming to continue to invest in and enhance its growing core segments while providing customers with a more comprehensive portfolio of offerings.”

Everi President and CEO Randy Taylor echoed these sentiments. He added that the transaction preserves the strategic rationale of the original agreement with IGT while delivering significant value to Everi’s stockholders.

Upon closing, Sadusky will oversee the separation of IGT Gaming and lead the newly focused IGT Global Lottery business. Fabio Celadon, IGT’s current EVP of strategy and corporate development, will take on the role of CFO for the new combined entity, while Everi CFO Mark Labay will become the chief integration officer. The headquarters for the new company will be in Las Vegas.

The transaction is expected to close by the end of the third quarter of 2025, subject to customary closing conditions, including regulatory approvals and approval by Everi stockholders. IGT shareholder approval is not required.

Advisers for the deal include Macquarie Capital, Deutsche Bank, and Mediobanca for IGT, with Sidley Austin LLP, White & Case LLP, and Wachtell, Lipton, Rosen & Katz providing legal counsel. Everi is advised by Global Leisure Partners LLC and Houlihan Lokey, with legal counsel from Pillsbury Winthrop Shaw Pittman LLP. Legal counsel for Apollo Funds is provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP. Financing commitments for the transaction are being provided by Deutsche Bank and Macquarie Capital.