GTECH buyout of IGT gains federal antitrust approval
GTECH Holdings’ $6.4 billion buyout of slot machine giant International Game Technology met one of the conditions required for the transaction to be completed, the companies announced Monday.
The deal received federal antitrust approval through early termination of the required waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.
The transaction is still subject to additional conditions, including the receipt of foreign antitrust clearances, required gaming regulatory approvals and approval by IGT and GTECH shareholders.
GTECH, an Italian-based lottery company, announced plans in July to buy IGT for $4.7 billion in cash and stock and the assumption of $1.7 billion in debt.
Under the terms of the transaction, IGT and GTECH would combine under a newly formed holding company organized in the United Kingdom.
The transaction is expected to be completed in the first half of 2015.
IGT employs 4,800 workers worldwide, with roughly 3,000 based in Nevada. IGT’s corporate offices are in Las Vegas. Company officials said there are no plans close its corporate manufacturing facility in Reno or to lay off employees.
The slot machine manufacturer announced in June it was exploring “strategic alternatives” while Wall Street speculated the company was for sale.
The combined IGT-GTECH entity would have more than $6 billion in annual revenues and more than $2 billion in cash flow based on the last 12 months as of March 31.
GTECH CEO Marco Sala will serve as CEO of the new company. IGT Chairman Phil Satre will serve as the new company’s chairman and IGT CEO Patti Hart will become vice chairman.
Less than two weeks after the GTECH-IGT deal was announced, New York-based lottery giant Scientific Games Corp. announced it was buying slot machine manufacturer Bally Technologies for $5.1 billion.
The deal calls for Scientific Games to purchase all of the outstanding shares of Las Vegas-based Bally for $83.30 per share — valued at $3.3 billion — and assume the company’s debt of approximately $1.8 billion.
Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871. Follow @howardstutz on Twitter.
