Information on the target
The target of this acquisition is International Game Technology’s gaming and digital business, known as IGT Gaming, along with Everi Holdings, a leading supplier of technology solutions for the casino floor. This strategic acquisition, valued at $6.3 billion, will result in both IGT Gaming and Everi becoming privately owned entities under a newly formed holding company backed by funds managed by affiliates of Apollo. Following the completion of the transaction, IGT will undergo a rebranding, transitioning into a premier pure play lottery business.
The acquisition is poised to enhance the operational capabilities and market positioning of both companies, leveraging their combined strengths in the gaming technology sector. The deal is expected to close by the end of the third quarter of 2025, pending customary closing conditions and regulatory approvals.
Industry overview in the target’s specific country
The gaming and technology solutions industry in the United States has experienced significant growth over the past decade, driven by technological advancements and increasing consumer demand for innovative gaming experiences. The rise of digital gaming platforms and the expansion of online gambling have reshaped the landscape, creating new opportunities for companies like IGT and Everi. As states continue to legalize and regulate various forms of gaming, the market is expected to expand further, providing a favorable environment for growth.
Moreover, the integration of technology in gaming operations has become paramount, with suppliers focusing on enhancing user experiences through advanced gaming solutions and data analytics. The demand for seamless, engaging gaming experiences has led to increased investments in technology, positioning companies that can innovate effectively at a competitive advantage.
In addition, the lottery segment remains a robust area within the gaming industry, with state-run lotteries generating substantial revenue. The shift towards digital lottery solutions is expected to further bolster growth, as consumers increasingly favor online and mobile platforms. This trend aligns with IGT's strategic pivot towards becoming a pure play lottery business, capitalizing on the evolving market dynamics.
Overall, the U.S. gaming industry is on a trajectory of growth, driven by regulatory changes, technological advancement…