Apollo Global Management to acquire gaming companies IGT and Everi in $6.3 billion deal

By Steve Gelsi

Apollo will buy both gaming companies, which had agreed to a merger deal in February

This article has been updated to correct the title of IGT Chief Executive Vince Sadusky after the merger closes.

International Game Technology PLC's and Everi Holdings Inc.'s stocks rallied Friday after the two gaming companies agreed to be acquired simultaneously by a new holding company owned by affiliates of Apollo Global Management Inc.

The all-cash deal by Apollo (APO) values the two businesses at about $6.3 billion on a combined basis.

Everi's (EVRI) stockholders will receive $14.25 per share, which is a 56% premium over its closing share price on Thursday.

Everi's stock rose 42% to $12.99 on Friday, while IGT's (IGT) jumped 14.5%.

IGT was in the process of a merger with Everi that was announced on Feb. 29. Instead, Apollo will buy both businesses.

IGT had planned to separate IGT Gaming through a taxable spinoff to IGT shareholders and then immediately combine the business with Everi.

De Agostini S.p.A., the Italy-based majority shareholder of IGT, plans to make a minority equity investment in the combined company.

After the deal closes, IGT Chief Executive Vince Sadusky will continue to lead the company as an independent business from the two merged businesses.

"We have long admired both companies and their highly talented teams," said Daniel Cohen, a partner at Apollo, adding that the company sees an opportunity to grow the business.

Las Vegas-based Everi leases and sells gaming equipment, gaming systems and interactive solutions.

London-based International Game Technology designs, manufactures and markets electronic gaming equipment, software and network systems.

Prior to Friday's moves, IGT's stock was down 26.5% so far in 2024, while Everi's had fallen about 19%.

-Steve Gelsi

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07-26-24 1428ET

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