A month after breaking news reports of Amaya Gaming buying PokerStars for $4.9 billion comes news of further consolidation in the industry as Italy’s GTECH S.p.A. acquires International Gaming Technology (IGT) in a whopping $6.4 billion deal. The acquisition will create an online gaming and lottery giant. IGT is known as the leading slot developer and will merge with the largest known provider of lottery systems.
Free Slot Money had reported that IGT was up for sale with GTECH being one of the front runners to make the move. There had been several companies that had bid for IGT. In the end GTECH agreed $4.7 billion in cash and a further absorption of the companies $1.7 billion in net debt.
The combined leading end-to-end gaming power house will consolidate under a UK holding company and will operate globally. The deal is due to complete within the first quarter of 2015.
Patti Hart, chief executive officer of IGT, commented on the deal: “This outstanding combination of two global leaders truly defines the future of gaming entertainment. Together we are uniquely positioned to provide the industry’s broadest and most innovative portfolio of best-in-class products, solutions and services.
“This strategic agreement positions us to further transform the industry while providing meaningful benefit and value to our customers, employees and shareholders.
GTECH’s Chief Executive Officer Marco Sala, who will also be CEO of the joint company, states in a conference call: “This is a transaction that we firmly believe will transform the gaming industry. We will have a library of games that will surpass that of any other company in the industry.”
Free Slot Money had also reported on the decline in IGT’s share price this year. The company was down 15% in revenue to $513 million in Q2 of 2014 compared to Q2 of 2013 due to declines in machine sales and gaming operations. Consolidation in the gaming industry is on the rise in 2014. IGT shares have increased 8.5 percent to $16.82 at 9:39 a.m. in New York upon news of the sale. Meanwhile, Bloomberg reports GTECH rose 4 percent to 19.18 euros in Milan.
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