In a significant move in the gaming sector, Apollo Funds is poised to complete a $6.3 billion acquisition of IGT’s Gaming and Digital business alongside Everi Holdings. This strategic all-cash transaction marks a transformative moment for both companies, with far-reaching implications for the industry as a whole.
Details of the Acquisition
Apollo Funds, a prominent investment firm, has struck a deal to acquire IGT’s Gaming and Digital division and Everi Holdings. This acquisition will bring both companies under Apollo’s private ownership, effectively consolidating their resources and market presence into one combined enterprise. The deal values the transaction at approximately $6.3 billion, underscoring its scale and significance.
Strategic Repositioning of IGT
As part of this acquisition, IGT has announced plans to spin off its gaming and digital vertical. The company will subsequently merge this division with Everi, creating a new entity that will operate under private ownership. Following the completion of this merger, IGT will rebrand itself to focus exclusively on its lottery business. This move will reposition IGT as a premier pure-play lottery company, separating it from its gaming and digital interests.
This rebranding initiative is reminiscent of Scientific Games’ rebranding to Light & Wonder in March 2022. Scientific Games had similarly chosen to focus on specific segments of its business by divesting its lottery and sports betting operations, which highlights a trend in the industry towards specialization.
Apollo Funds’ Vision and Statement
Daniel Cohen, a Partner at Apollo Funds, expressed enthusiasm about the acquisition, emphasizing the potential benefits of the deal. “We are excited to reach this agreement with IGT and Everi, which establishes a leading, diversified solutions provider that is well-positioned across the entire gaming ecosystem,” Cohen said. He highlighted Apollo’s longstanding admiration for both companies and their teams, citing confidence in the value proposition of the merger.
Cohen further elaborated on the anticipated advantages of the transaction: “We strongly believe in the value proposition of the combination and are confident these complementary gaming platforms will be even better positioned under private ownership to capture the opportunities ahead to grow and create value.”
Implications for the Gaming Industry
This acquisition represents a notable consolidation in the gaming sector. By combining IGT’s Gaming and Digital operations with Everi, Apollo Funds aims to create a more robust and diversified player in the market. The integration of these platforms is expected to enhance their competitive edge and ability to innovate within the gaming ecosystem.
The move also reflects broader industry trends where companies are increasingly focusing on specific segments of their business to drive growth and operational efficiency. The rebranding of IGT to concentrate on the lottery market, coupled with the establishment of a strong combined gaming entity, signifies a strategic realignment aimed at maximizing value and market impact.
With the acquisition expected to close soon, stakeholders across the gaming industry will be closely watching how the integration of IGT Gaming and Everi unfolds. The transition to a combined enterprise under Apollo’s ownership will likely set new standards for operational excellence and market leadership in the gaming sector.
Apollo Funds’ $6.3 billion acquisition of IGT’s Gaming and Digital division and Everi Holdings is set to reshape the gaming landscape. As IGT refocuses on its lottery business and the new combined entity prepares to leverage its enhanced capabilities, the industry anticipates a period of transformation and growth.