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Gaming giant IGT returning to Las Vegas in $6.2B merger with Everi

Updated February 29, 2024 - 4:57 pm

The world-renowned IGT brand is returning to Las Vegas in a big way.

Two major gaming equipment manufacturers — IGT and Las Vegas-based Everi Holdings Inc. — will merge in a $6.2 billion deal announced Thursday.

The combined company will be known as IGT with its CEO, Vince Sadusky, to lead the joined entities. Everi Executive Chairman Michael Rumbolz will serve as chairman of the board of directors of the combined company.

An IGT representative said the combined company hasn’t announced plans for the employee base or real estate owned by both IGT and Everi, but said the new company would be headquartered in Las Vegas with a statewide employee base working in its business and manufacturing operations.

The other part of the company, which includes its lottery division, will take on a new as-yet-undetermined name and remain based in London with its management operation in Italy and a U.S. office in Providence, Rhode Island.

Both companies will be publicly traded with the Las Vegas entity taking the IGT ticker symbol and traded on the New York Stock Exchange.

IGT is spinning off its Global Gaming and PlayDigital businesses as a key part of the merger strategy.

A gaming industry analyst who has followed both companies believes the stock value will increase for both entities.

“We believe the combined company could utilize the stronger soft and hard resources from both entities, and bring the necessary scale to the market to compete with the leaders in gaming content and equipment,” analyst David Katz of Jefferies said in a Thursday note to investors. “We expect both could trade higher over time.”

Founded in 1998 as Global Cash Access Holdings, Inc., Everi joins globally dominant IGT, which has been led by a core group of Italian executives. Founded in Nevada in 1990, IGT already has a major presence in Las Vegas with manufacturing operations in Reno.

Under terms of the deal, which is expected to close later this year or in early 2025, IGT shareholders would own 54 percent of the company and Everi shareholders the remaining 46 percent. The deal must be approved by shareholders of both companies and gaming regulators worldwide.

“The transaction will combine two robust gaming platforms with complementary capabilities, geographic footprints, and enhanced growth opportunities,” IGT Executive Chairman Marco Sala said in a release. “It also facilitates the separation of IGT’s Global Gaming and PlayDigital businesses from our Global Lottery business, resulting in a pure play global lottery business.”

Rumbolz said the merger would be beneficial to shareholders as well as the gaming industry.

“We believe this merger combines two highly complementary businesses in a transformational manner, creating a global, land-based and digital gaming, fintech and systems business,” Rumbolz, a former Nevada gaming regulator, said in a release. “We expect the combined company will deliver a comprehensive range of products and services that will engage gaming patrons and drive efficiencies and revenues to our customers.”

Everi had 2,200 employees worldwide at the end of 2023, according to a Securities and Exchange Commission filing from the company. IGT has approximately 10,500 global employees, about 1,650 who are based in Nevada, according to a company representative.

Executives say the blended company will provide a one-stop shop across land-based gaming, iGaming, sports betting and financial services products.

The combined companies will have an installed base of 70,000 slot machines generating recurring revenue. Revenue for 2024 is projected at $2.7 billion with projected adjusted cash flow of $1 billion.

The blended operation is expected to provide about $85 million in cost savings and opportunities for capital expenditure efficiencies.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on X. Review-Journal reporter McKenna Ross contributed to this report.

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