In a massive deal shaking up the casino and gaming industry, International Game Technology (IGT) and Everi Holdings Inc. have announced that they will be acquired by Apollo Global Management, the owner of the Venetian Resort in Las Vegas, in a $6.3 billion agreement.
The acquisition, which was announced in a joint statement by all three companies, will see Apollo Management paying $23 per share for IGT and $15 per share for Everi Holdings, representing a premium of over 30% on each company’s closing stock price.
IGT, a leading gaming technology company known for its slot machines and other casino equipment, has been struggling in recent years as the industry has become increasingly competitive. Everi Holdings, a supplier of gaming equipment and financial technology solutions for casinos, has also faced challenges as the gaming landscape has evolved.
The acquisition by Apollo Management, a private equity firm with a focus on investments in leisure, gaming, and hospitality, is seen as a strategic move to strengthen its presence in the casino and gaming industry. Apollo Management already owns the Venetian Resort in Las Vegas and has been looking to expand its portfolio in the sector.
The deal is expected to bring significant synergies for all three companies, with IGT and Everi Holdings benefiting from Apollo Management’s financial resources and strategic expertise. It will also allow Apollo Management to diversify its investment portfolio and tap into the growing global gaming market.
Industry analysts have welcomed the acquisition, seeing it as a positive development for IGT and Everi Holdings, which have been struggling to compete with larger players in the industry. The deal is also expected to create opportunities for growth and innovation, as Apollo Management looks to leverage its resources to drive expansion and create value for shareholders.
The acquisition is subject to regulatory approval and is expected to close in the coming months. In the meantime, all three companies will continue to operate independently, with plans to integrate their operations and resources following the completion of the deal.
Overall, the acquisition of IGT and Everi Holdings by Apollo Management represents a major consolidation in the casino and gaming industry, with the potential to reshape the competitive landscape and drive growth in the sector. It will be interesting to see how the deal unfolds and what new opportunities it will bring for all parties involved.