IGT and Everi Embark on Transformative Merger

International Game Technology PLC (IGT) and Everi Holdings Inc. have entered into definitive agreements that will separate IGT’s Global Gaming and PlayDigital businesses. Following the spin-off, these entities will combine with Everi to create a dynamic global gaming and fintech enterprise. The transaction, valued at approximately $6.2 billion, is set to reshape the landscape of the gaming industry.

The Merger Should Maximize Shareholder Value

This strategic move involves a series of steps wherein IGT will spin off a subsidiary holding its Global Gaming and PlayDigital businesses to IGT shareholders. This entity will merge with Everi, with IGT shareholders receiving shares of Everi common stock. After the completion of the transaction, Everi will be renamed International Game Technology, Inc. and will trade on the NYSE under the ticker IGT.

Under the terms of the agreement, IGT shareholders will own around 54%, and Everi stockholders- about 46% of the shares in the combined company. The IGT Board of Directors and Everi Board of Directors have unanimously approved the deal, poised to unlock significant value for shareholders and lead to sustained growth.

In conjunction with the merger, IGT will receive approximately $2.6 billion in cash, primarily allocated to debt repayment and separation expenses. The transaction implies an enterprise value for IGT’s Global Gaming and PlayDigital businesses of about $4.0 billion and an enterprise value for Everi of approximately $2.2 billion.

The Two Companies Expect to Shake Up the Industry

The benefits of the merger include a comprehensive product portfolio aiming to deliver projected 2024 revenue of approximately $2.7 billion and projected 2024 Adjusted EBITDA of roughly $1 billion. Everi executive chairman Michael Rumbolz noted that the emerging fintech and system business would leverage the two companies’ synergies and reach new heights.

We expect the combined company will deliver a comprehensive range of products and services that will engage gaming patrons and drive efficiencies and revenues to our customers.

Michael Rumbolz, Everi executive chairman

Upon closing, Vince Sadusky will lead the combined company as CEO, with Everi’s Michael Rumbolz serving as Chairman of the Board. The new entity will be headquartered in Las Vegas, bringing together experienced management teams from IGT and Everi. Current IGT CEO Vince Sadusky noted that the merger would enable the companies to address a broader section of the gaming industry and diversify their offerings.

The creation of separate gaming and lottery companies with simplified business models better positions (them) to service customers and create significant value for stakeholders.

Vince Sadusky, IGT CEO

The merger is subject to regulatory approvals, approval by Everi stockholders and IGT shareholders, and other customary closing conditions. The anticipated timeline is late 2024 or early 2025. IGT and Everi should benefit substantially from this development, capitalizing on emerging opportunities in various sectors, from traditional gaming to fintech, and disrupting the current status quo.