- Legal States
Angel Hristov September 15, 2022 3 min read
IGT Finalized Proximity Payment Business Sale to PostePay
In late February 2022, International Game Technology (IGT), a global gaming tech brand, announced that it will be selling its Italian proximity payment business to PostePay in a $785 million deal. IGT now confirmed that the sale has been completed.
IGT Sold Proximity Payment Business to PostePay
The agreement covers the sale of LIS Holding and LISPAY, IGT’s Italy-based proximity payment subsidiaries. The two brands offer payment solutions and are backed by a robust network of 54,000 points of sale. As per the agreement, PostePay acquired LIS Holding directly from IGT and purchased LISPAY indirectly. The sale was approved by IGT’s board of directors before the company proceeded with it.
According to IGT, the proximity payment business had around $140 million in unrestricted cash when the deal was completed.
The money from the deal will help IGT reduce its debt. In February, Vince Sadusky, the chief executive of IGT, said that the deal’s value was “very attractive” and will help with the company’s long-term strategy. According to him, selling the proximity payment business will help IGT streamline its business and focus on more lucrative operations.
Streamlining our products and solutions portfolio enables us to focus our efforts and resources on our core and strategic assets, as we position IGT for industry leadership and increased shareholder value.Vince Sadusky, CEO, IGT
PostePay will also benefit a great deal from the agreement. During the past few years, IGT managed to cement LIS Holding and LISPAY as leading payment providers in the Italian market. PostePay will, therefore, be able to greatly expand its footprint in the country.
IGT Wants to Streamline Its Business amid Recent Struggles
The proximity payment business isn’t the only Italy-facing business IGT has sold. In early 2021, the company also sold its gaming assets to Apollo Global in a deal valued at over $1.15 billion. However, these sales don’t mean that IGT is going to pull out of the Italian market. On the contrary, IGT recently inked a partnership deal with the SKS365-owned Planetwin365 casino. As per the agreement, IGT agreed to supply Planetwin365 with world-class content.
IGT is, meanwhile, expanding its presence in other regions as well. Two weeks ago, the B2B giant penned an agreement extension with the New York Lottery and agreed to continue supplying it through 2026.
In early August, IGT posted its Q2 2022 results. Unfortunately, the company’s progress stalled as it recorded declines across the board. The company ended the quarter with a net loss of $4 million, in stark contrast of the net income of $300 million it earned in Q2 2021.