Apollo makes a bold move to acquire Everi and IGT gaming in a deal for $6.3 billion.

Apollo makes a bold move to acquire Everi and IGT gaming in a deal for $6.3 billion.

 The gaming company of International Game Technology (IGT) and Everi will be acquired by Apollo Global, a private equity behemoth, in a transaction that is valued at $6.3 billion. This acquisition will replace the prior merger plans that the firms had together.
 The lottery licence for IGT Italy
 Apollo will be responsible for the spin-off of IGT's gaming division and the subsequent merger of that firm with Everi, a supplier of casino technology and payments specialists, to form a single integrated enterprise.

 Everi owners will receive $14.25 per share in cash, which is a 56% premium over the price at which Everi shares closed on July 25. On the other hand, IGT stockholders will receive $4.05 billion in cash.  The acquisition is estimated to be worth around $6.3 billion.

 Do you recognise the name IGT-Everi?
 With this arrangement, the two companies that are already in operation will be merged into a single entity.  IGT made the announcement in February that they intend to combine the worldwide Gaming and PlayDigital companies with Everi in order to establish a worldwide corporation that is perceived as "comprehensive and diverse."

 The deal with the Apollo funds has received the support of Everi's board of directors as well as the consent of an IGT board special committee, which has unanimously approved the transaction.  The previous transaction agreement that IGT and Everi had in place has been terminated as a consequence of this.

 Under the terms of that earlier arrangement, the expanded business would have been able to trade on the New York Stock Exchange under the name IGT.  In its place, it will be delisted, but the legacy IGT lottery business, which is not a part of the transaction, will continue to operate as a listed business under a new identity going forward.  The previous majority stakeholder of IGT, De Agostini SpA, will continue to keep a minority part in the expanded IGT-Everi firm.

 In a statement, Apollo partner Daniel Cohen stated that the company would be "even better positioned under private ownership to capture the opportunities ahead to grow and create value."

 According to Cohen, the combination will result in the creation of "a leading, diversified solutions provider that is well positioned across the entire gaming ecosystem."  Since we have been an active investor in the gaming and leisure industry for a considerable amount of time, we have long respected both firms and the exceptionally talented teams that they employ.

 Variation in the plans for leadership
 Additionally, the initial arrangement established Vince Sadusky, who is currently the chief executive officer of IGT, as the CEO of the new entity.  Those plans have been altered.

 Sadusky will now be in charge of overseeing the separation of the gaming operations and providing support for the transition all the way until the conclusion of the sale.  After that, he continues to serve as the Chief Executive Officer of the lottery company.

 Also scheduled to continue in his role as head of the new entity was Mike Rumbolz, who serves as the executive chairman of Everi.  As far as the Apollo announcement is concerned, he is not mentioned at all.

 Although it is not entirely apparent who will be in charge of the IGT-Everi firm, two key executives will continue to be employed there.  Fabio Celadon, vice president of strategy and corporate development at IGT, has been promoted to the position of chief financial officer, and Mark Labay, chief financial officer at Everi, has been given the title of chief integration officer.  Las Vegas will serve as the location of the new company's headquarters.

 A "positive evolution" of the agreement between IGT and Everi
 According to Sadusky, the current deal is "a positive evolution" of the prior transaction between the parties.

 "With the Apollo Funds, we have found a partner that acknowledges the power of IGT Gaming, the worth of our talent, and our position in the industry," the company said.  With the completion of this acquisition, IGT Gaming will be able to continue investing in and improving its core areas, which are experiencing growth, while simultaneously presenting clients with a more comprehensive range of offerings.

 From the perspective of Randy Taylor, president and chief executive officer of Everi, the revised agreement preserves the integrity and strategic reasoning of the initial one, while also providing "significant and certain value" for shareholders.

 Apollo is a well-respected investment group that has a solid track record in the gaming industry. They see the value of our company and believe that there is considerable potential in bringing together IGT Gaming and Everi.

 "We believe that we will be in a better position to accelerate the integration of our two organisations for the benefit of our customers and employees if we are under private ownership,"

 The news will be followed by an investor call and an announcement of IGT's first half results, all of which are scheduled to take place on December 30.  On the other hand, Everi is going to announce its results by the 9th of August, but there will be no call for them to take place.

 In the wake of the news, Everi's stock price skyrocketed by 40.15 percent to $12.81 per share during pre-market trading. Meanwhile, IGT's stock price increased by 16.57 percent to $23.50 per share in New York before the markets opened.