(Bloomberg) -- Apollo Global Management Inc. has agreed to buy International Game Technology Plc’s gaming division and the gambling machines company Everi Holdings Inc. in a $6.3 billion, all-cash deal that will see the two businesses merged.
The takeover will bring IGT’s products, which include video, electronic table and Wheel of Fortune games, and Everi’s Bingo and casino offerings under one roof. Apollo Global was said to have been among the potential suitors vying to buy IGT’s global gaming division last year, Bloomberg News reported.
“As an active investor in the gaming and leisure sector for many years, we have long admired both companies and their highly talented teams,” Apollo partner Daniel Cohen said. “We strongly believe in the value proposition of the combination and are confident these complementary gaming platforms will be even better positioned under private ownership.”
The newly formed company will be headquartered in Las Vegas, according to a company statement. The deal is expected to be completed by the end of the third quarter of 2025. IGT shares surged 16% in early trading in New York while Everi was up 40%.
Once the sale is complete, IGT Gaming will change its name and stock ticker symbol and become a pure-play, global lottery business, and Everi will be delisted from the New York Stock Exchange.
Macquarie Capital, Deutsche Bank and Mediobanca are serving as financial advisors to IGT, and Sidley Austin LLP, White & Case LLP and Wachtell, Lipton, Rosen & Katz are legal counsel.
Global Leisure Partners LLC is serving as the financial advisor to Everi, and Houlihan Lokey provided financial advice to Everi’s board. Pillsbury Winthrop Shaw Pittman LLP is serving as legal counsel to Everi.
Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal counsel to the Apollo Funds. Deutsche Bank and Macquarie Capital are providing financing commitments for the transaction.
(Updates with shares.)
©2024 Bloomberg L.P.
