Private equity giant Apollo Global Management is among the potential suitors seeking to acquire International Game Technology‘s Global Gaming division, which could garner $4 billion to $5 billion in a sale, including debt, according to a report from Bloomberg.
“We are still in the process of exploring strategic alternatives for our Global Gaming and PlayDigital segments and can’t comment on rumors or speculation,” IGT said, as reported by Reuters. For its part, Apollo Global has yet to comment on the rumors.
UK-based IGT said in June that it was considering “potential strategic alternatives” for its Global Gaming and PlayDigital segments. The company said it would consider a sale, merger, spin-off, or retaining the divisions.
“Over the last three years, IGT has sharpened its strategic focus by reorganizing around core product verticals, monetizing non-core assets, reducing structural costs, and significantly improving its credit profile,” Marco Sala, IGT executive chair, said in a June 8 news release.
“We believe the intrinsic value of IGT’s market-leading businesses and diversified cash flow profile is not currently reflected in our stock price and the timing is right to assess opportunities that may enhance value for IGT’s shareholders,” he added.
Marco Sala
The company’s global gaming division includes its gaming hardware, software, and licensing, while its digital business consists of iGaming systems and digital platforms and its sports betting technology and services.
Apollo, operator of the Venetian and Palazzo hotel-casinos, has previously backed slot machine manufacturers. In late 2022, it sold its 22% stake in Las Vegas-based gaming manufacturer PlayAGS after nearly a decade of ownership.
A September 15 research note from Truist Securities analyst Barry Jonas said IGT’s management did not have specific updates on the strategic review but noted “they are running multiple processes concurrently.”
In August, IGT reported its financial results for the second quarter of the year, showing robust revenue and profit momentum across all business segments.
Global Gaming saw remarkable growth, with revenue reaching $373 million, a significant 13% increase from $330 million in the prior year. The surge was driven by record U.S. & Canada unit shipments, higher global average selling prices, growth in the installed base across various regions, and robust system sales.
Meanwhile, PlayDigital, IGT’s digital gaming division, also experienced a notable upswing, with revenue soaring by 38% to $59 million, up from $43 million in the prior year. This growth was attributed to strong player demand trends and contributions from IGT’s acquisition of iSoftBet.
Original article: https://www.yogonet.com/international/noticias/2023/09/21/68866-apollo-global-reportedly-considering-acquiring-igt-39s-global-gaming-playdigital-segments
