Deutsche Bank Leads $4.3B Deal for Apollo’s Acquisition of Everi and PLC-IGT

Deutsche Bank AG is leading a $4.325 billion bond-and-loan offering to finance Apollo Global Management Inc.’s ambitious buyout of two big casino equipment suppliers. The deal represents one of the most pivotal mergers and acquisition moves in the gaming landscape this year, a sector where such high-profile deals are a rarity.

Everi and PLC-IGT Will Go Private

The debt deal will finance Apollo’s $6.3 billion bid to acquire Everi Holdings Inc. and the gaming and digital operations of International Game Technology Plc-IGT. These two companies had previously planned to merge until Apollo’s aggressive move altered the industry’s dynamics, surprising many stakeholders.

The deal will see Apollo’s newly created holding subsidiary, Apollo Funds, acquire IGT’s gaming and digital businesses and Everi Holdings. This acquisition will transform these publicly traded companies into private entities, signaling a significant market shift. Under the deal, each Everi shareholder will take $14.25 per share in cash, while IGT will receive a substantial $4.05 billion in gross cash proceeds from the sale of its gaming operations.

The financing, which underpins this high-stakes acquisition, comes from Deutsche Bank and Macquarie Capital, both of which previously offered $3.7 billion for the first merger deal between IGT and Everi. The current financing structure, involving high-yield bonds and leveraged loans, is still being finalized. Even so, the total figure of $4.325 billion underlines the significant capital required to complete such a large-scale buyout.

High-Profile Acquisitions Are Becoming More Common

Apollo Global Management’s acquisition of Everi Holdings and IGT’s gaming and digital operations is a landmark event in the gaming industry. Taking these companies private would enable Apollo to streamline operations, enhance market competitiveness, and potentially unlock new growth opportunities in the lucrative gaming equipment sector.

The deal also reflects the growing influence of private equity in the gaming market, in which billion-dollar mergers and acquisitions are becoming increasingly more common. With Deutsche Bank leading the charge, this transaction could set a precedent for future deals, especially those involving high-yield debt financing.

This move by Deutsche Bank and Macquarie represents a growing trend of banks stepping up to finance acquisitions involving noninvestment-grade firms. The banks can launch the bond and loan offerings anytime before September 2025, aligning with the anticipated completion date of Apollo’s takeovers. The success of this financing deal could influence how other banks approach similar transactions.