Fitch Ratings has maintained a “Rating Watch Positive” status for International Game Technology (IGT) and Everi Holdings Inc. following a major acquisition announcement. Apollo Global Management is set to acquire IGT’s Gaming & Digital business and Everi Holdings in a substantial $6.3 billion transaction. Although the planned merger between IGT and Everi will not proceed, both companies will come together under a new Apollo-led entity. The deal is anticipated to close by the end of Q3 2025, with significant implications for IGT’s financial structure and debt management.
Transaction Details and Implications
Apollo’s $6.3 billion acquisition involves two main components: the purchase of IGT’s Gaming & Digital division and Everi Holdings. Despite the cessation of the IGT-Everi merger, the consolidation of these entities under Apollo’s ownership will significantly reshape the landscape. IGT will receive $4.05 billion in cash for its Gaming & Digital business, transforming it into a lottery-focused company. This shift is expected to enhance IGT’s operational focus and financial stability.
Under the new arrangement, IGT plans to allocate around $2 billion to pay down its existing debt, which includes term loans and other financial instruments. Fitch Ratings does not foresee major changes in IGT’s capital structure or debt recovery ratings. The agency’s outlook reflects confidence in IGT’s ability to manage its debt effectively and maintain a robust capital framework.
Fitch’s Rating and Future Expectations
Fitch has reaffirmed its rating on IGT and IGT Lottery Holdings B.V. at ‘BBB-’/‘RR2’. This decision follows a March 2024 review that placed both entities on Rating Watch Positive. The anticipated transition to a pure lottery business is expected to strengthen IGT’s market position, providing more predictable and resilient cash flows. Fitch highlights the benefits of a simplified capital structure and projected EBITDA leverage below 3.0x at closing, which contribute to the positive outlook.
Everi Holdings, on the other hand, plans to refinance its existing debt upon the completion of the acquisition. This refinancing will be critical in determining Everi’s financial stability and creditworthiness in the post-acquisition environment. The successful refinancing is expected to demonstrate Everi’s resilience and adaptability in managing its financial obligations.
Strategic Impact and Market Position
The acquisition by Apollo Global Management represents a strategic shift for both IGT and Everi. For IGT, the transition to a pure-play lottery company is likely to enhance its focus and operational efficiency within the lottery sector. This specialization may lead to more predictable revenue streams and potentially higher valuations as a focused entity.
Everi Holdings stands to benefit from Apollo’s strategic support and the infusion of cash, which could facilitate growth and consolidation opportunities in the gaming industry. The refinancing of Everi’s debt will play a pivotal role in its financial stability and future credit ratings.
The creation of a new Apollo-owned entity combining IGT and Everi will result in a significant player in the gaming and lottery sectors. This consolidation is expected to bolster market position and competitive advantage. IGT’s focus on a lottery business is likely to attract investors seeking stable and predictable returns, while the anticipated improvements in capital structure and liquidity will support Fitch’s positive credit outlook.
Apollo Global Management’s $6.3 billion acquisition marks a transformative moment for IGT and Everi Holdings. Fitch Ratings’ positive outlook reflects the anticipated benefits of the transaction, including a strengthened capital structure for IGT, strategic growth opportunities for Everi, and an enhanced market position under Apollo’s ownership. As the deal progresses towards its expected closure in Q3 2025, stakeholders will closely monitor the financial adjustments and strategic developments that arise from this significant acquisition.