Apollo acquires Everi and IGT's gaming division in a deal worth $6.3bn
Asset management firm to take control of IGT’s Gaming and Digital business, while Everi stockholders will receive $14.25 per share
Suppliers IGT and Everi have entered into a definitive agreement with Apollo Global Management, which will see the investment firm acquire Everi and IGT’s Gaming and Digital arm.
The all-cash transaction, which values both companies at around $6.3bn, is expected to be completed in the third quarter of 2025.
The deal will see Everi shareholders receive $14.25 per share in cash, representing a 56% premium over the company’s closing share price on July 25, 2024.
IGT will receive $4.05bn of gross cash proceeds for IGT Gaming, with the company expecting most of the money to be used to repay debt and to be returned to shareholders.
The announcement of the acquisition sparked a 17% pre-market jump in IGT’s shares to $23.50.
Back in February, IGT and Everi announced that they had entered into a $6.2bn agreement which would separate the IGT Gaming business by way of a taxable spin-off to IGT shareholders and then immediately combine the business with Everi.
Under the terms of the new agreement, the Apollo Funds will acquire IGT Gaming and Everi. After closing, IGT Gaming and Everi will both be privately owned companies that are part of one combined enterprise.
The terms of IGT and Everi’s previous deal will now be terminated.
The Apollo acquisition has been unanimously approved by both IGT’s and Everi’s respective boards of directors.
IGT’s majority shareholder, De Agostini S.p.A, has also agreed to make minority equity investment in the combined business at the closing of the transaction.
Vince Sadusky, IGT CEO, 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.
“With the Apollo Funds, we have found a partner that recognizes the strength of IGT Gaming, the value of our talent and our position in the industry.
“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.
“After the closing of this transaction, IGT’s shareholders will continue to own one hundred percent of IGT’s Global Lottery business, which will be positioned for long-term success as a pure-play global lottery player with a more focused, compelling business model and optimized capital structure to drive long-term shareholder value,” he concluded.
Randy Taylor, Everi President and CEO, added that the move to seek out private ownership will leave both companies in a better position than their original agreement.
He said: “We believe this transaction maintains the integrity and strong strategic rationale of our original agreement with IGT, but now also provides significant and certain value to our stockholders as we move forward with the Apollo Funds as our partner.
“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.”