Apollo Global Management has penned a $6.3 billion take-private deal with two gambling companies as competition within the sector heats up.
The deal will combine Everi Holdings with the Gaming & Digital vertical of International Game Technology (IGT), forming a new entity that will be headquartered in Las Vegas.
In the all-cash deal, IGT will receive $4.05 billion in gross cash payment for its IGT Gaming & Digital vertical, while Everi stockholders will receive $14.25 per share, representing a 56% premium on the closing stock price as of July 25.
According to PitchBook’s Q2 2024 Gaming Public Comp Sheet and Valuation Guide, gambling companies have been rising in the public markets, with a YTD average gain of 29%. This is a result of gambling becoming legal in 38 states, with more expected to follow, prompting companies to expand their platform offerings.
The dealmaking started when IGT and Everi agreed in February to combine the businesses, giving IGT 56% ownership of the new company and Everi the remaining shares . That agreement has been terminated in favor of Apollo’s acquisition, which is expected to close by the end of Q3 in 2025.
IGT’s Gaming & Digital business focuses on providing gambling experiences for players across digital, gambling and sports-betting platforms.
Everi specializes in providing financial technology solutions to casino operators and to support other interactive games.
Deutsche Bank and Macquarie, acting as financial advisers for IGT on the deal, have provided commitments to the transaction.
Apollo declined to comment.
Featured image by Jonathan Knowles/Getty Images
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