IGT and Everi Take Action to Ease Investor Concerns Amid Merger Uncertainty

In the wake of the recent announcement regarding their proposed merger, executives from IGT and Everi have taken steps to allay investor concerns surrounding regulatory hurdles.

IGT and Everi’s Merger Plans Face Scrutiny

Last week, IGT unveiled plans to spin off its land-based and digital businesses, which would then merge with Everi Holdings in a monumental $6.2 billion deal. The resultant entity would retain the esteemed IGT brand, while the lottery division would persist as a standalone venture.

According to the agreement, approximately 54% of the shares in the combined company will be owned by IGT shareholders, while about 46% will be held by Everi stockholders. Both the IGT Board of Directors and the Everi Board of Directors have unanimously endorsed the deal, anticipating it to unlock significant value for shareholders and drive sustained growth.

During an investor call subsequent to the revelation, representatives from both IGT and Everi delineated the regulatory challenges that must be surmounted to complete the merger by its proposed deadline, anticipated to be between late 2024 and early 2025.

Reportedly, the projected timeline and potential ambiguities about securing regulatory approvals have posed a source of concern for investors.

IGT CEO Vince Sadusky acknowledged that antitrust considerations could play a role, as he maintained that there were competitors who were larger out there, even with this combination.

Sadusky addressed the concerns regarding gambling regulators by emphasizing the extensive compliance records of both companies as established, consistently compliant, and reputable entities. He asserted that these records would facilitate a smooth regulatory transition.

IGT CEO Details IGT’s Path to Everi Partnership

Highlighting the genesis of the merger, Sadusky provided investors with insights into the deliberative process that led to the deal’s conception. He underscored IGT‘s consecutive years of record-breaking performance, juxtaposed with the discrepancy in share price performance, indicating a strategic imperative for change.

IGT’s analysis suggested that divesting the gaming and lottery businesses was integral to unlocking shareholder value. The merger would enable a heightened focus on each business segment while preserving individual capital policies.

After evaluating various scenarios, Sadusky asserted that the Everi deal emerged as the most logical option. He expressed confidence in the alignment of the two companies’ product lines, particularly Everi’s prowess in FinTech, which complements IGT’s strengths in systems.

Sadusky concluded by affirming the rationale behind the merger, asserting that separation made a lot of sense and that partnering with a company like Everi, with its complementary strengths, was truly the best alternative, surpassing any other options they had pursued or worked on.