Apollo acquires Everi and IGT gaming in $6.3bn deal: What’s the strategy behind the move?

Apollo Global Management is set to transform IGT’s gaming business through a strategic deal merging it with casino technology and payment solutions provider Everi. This move will consolidate both under a single, powerful enterprise.

Everi shareholders stand to benefit significantly, receiving $14.25 per share in cash—an impressive 56% premium over Everi’s closing share price on July 25. Moreover, the deal will infuse IGT with $4.05 billion in cash. The total valuation of this transaction hits approximately $6.3 billion.

This strategic maneuver aims to enhance operational efficiencies and market reach, positioning the combined entity for significant growth in the gaming and technology sectors.

IGY and Everi merge in a strategic move

The highly anticipated merger of IGT’s Global Gaming and PlayDigital businesses with Everi is now in progress. Announced in February, this strategic move aims to create a comprehensive and diverse global enterprise.

The transaction, which includes the involvement of Apollo funds, has received unanimous approval from a special committee of IGT’s board and also from Everi’s board of directors. Consequently, the previous transaction agreement between IGT and Everi has been terminated.

This merger marks a significant step toward building a formidable presence in the global gaming industry, leveraging the strengths and capabilities of both companies to offer an enhanced array of services and solutions.

IGT and Everi merge to form an industry leader

De Agostini SpA, the former majority shareholder of IGT, has announced its decision to retain a minority stake in the newly expanded IGT-Everi entity. This strategic move aligns with the company’s long-term vision for diversified investments within the gaming sector.

According to industry expert Cohen, the merger positions the combined entity as a “leading, diversified solutions provider that is well positioned across the entire gaming ecosystem.” This integration is set to enhance the company’s market position and broaden its service offerings.

Key features of the IGT-Everi merger

• Enhanced Market Presence;
• Diversified Solutions Portfolio;
• Strong Stakeholder Support;
• Innovative Product Development;

Market impact table

The newly formed entity aims to leverage combined resources to drive innovation and maximize shareholder value, setting a new standard in the gaming industry.

The leadership structure of the IGT-Everi merger remains somewhat ambiguous, although two key executives will continue in pivotal roles. IGT’s executive vice-president of strategy and corporate development, Fabio Celadon, has been appointed as the new chief financial officer. Meanwhile, Everi’s CFO, Mark Labay, is set to take on the role of chief integration officer. The new business entity will be headquartered in Las Vegas.

IGT Gaming announces strategic partnership with Apollo Funds

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 empower IGT Gaming to continue investing in and enhancing its expanding core segments. It also ensures that we can provide our customers with a more comprehensive portfolio of offerings.

We are thrilled to embark on this partnership, confident it will allow us to maintain our industry leadership while pushing the boundaries of innovation and customer service.

IGT and Everi set to release financial results

Following the announcement, IGT will disclose its first-half results and conduct an investor call on 30 July as planned. Conversely, Everi will publish its results by 9 August, but no call will take place.

Key dates for investor awareness

• IGT First Half Results: 30 July;
• IGT Investor Call: 30 July;
• Everi Results Release: 9 August;