International Game Technology to merge two units with Everi in $6.2 billion deal

FILE PHOTO: A screen displays the ticker symbol for International Game Technology PLC, (IGT) at the post where it is traded following it's launch on the floor of the New York Stock Exchange April 7, 2015. REUTERS/Brendan McDermid/File Photo

(Reuters) -International Game Technology said on Thursday it was separating its Global Gaming and PlayDigital businesses and combining them with gaming machine maker Everi Holdings in a deal valued at $6.2 billion, including debt.

The deal follows a review of the two units and will leave IGT a pure-play global lottery business by separating its offerings such as land-based gaming, iGaming, sports-betting and fintech. The lottery business made up more than half of its overall revenue in the third quarter.

IGT shareholders are expected to own about 54% of the combined company, with the rest going to Everi stockholders.

After the deal close, expected in late 2024 or early 2025 subject to regulatory approvals, Everi will change its name to International Game Technology and trade on the New York Stock Exchange as IGT.

"We are bringing together two businesses with complementary strengths that are stronger and more valuable together," said IGT CEO Vince Sadusky, who will lead the combined Las Vegas-based company after the deal closes.

The transaction implies an enterprise value of $4 billion for IGT's Global Gaming and PlayDigital businesses and $2 billion for Everi.

The deal will yield cost savings of about $85 million, with a projected pro-forma 2024 revenue of $2.7 billion.

(Reporting by Ananta Agarwal in Bengaluru; Editing by Anil D'Silva and Devika Syamnath)

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