Funds managed by affiliates of Apollo Global Management have agreed to acquire both IGT’s Gaming & Digital business and Everi in an all-cash deal valuing the combined companies at $6.3bn. IGT Gaming and Everi will be private companies, part of a larger corporate entity, after the sale is completed.
IGT’s remaining lottery business will change its name and ticker symbol
In February, IGT and Everi announced that they had agreed to a merger of the IGT Gaming business and Everi, valuing the new company at $6.2bn. With the new deal with Apollo, not only will the combined business go private, but IGT’s remaining lottery business will change its name and ticker symbol.
Apollo is paying Everi shareholders $14.25 per share, for an implied valuation of $1.2bn. Adding the company’s $1bn in debt, the Everi portion of the deal is worth $2.2bn.
IGT will receive $4.05bn in cash, which will be used to pay down debt and distribute to shareholders.
IGT shares closed at $23.77 on Friday, a 17.91% increase. Everi shares soared 40.26%, closing at $12.82.
