IGT sells Italian gaming machine, sports betting unit for $1.27B
IGT will look more like a lottery company than a gaming company after a $1.27 billion transaction announced Monday, according to a Las Vegas-based analyst.
London-based IGT, which has significant holdings in Nevada, reported the sale of its Italy-based Lottomatica Videolot Rete S.p.A. and Lottomatica Scommesse S.r.I., which operate gaming machines, sports betting and digital gaming businesses, to Gamenet Group S.p.A. Gamenet is a subsidiary of funds operated by an affiliate of Apollo Global Management Inc.
Proceeds from the cash deal will enable IGT to pay down debt, the company said.
“The transaction enables IGT to monetize its leadership positions in the Italian business-to-consumer gaming machine, sports betting and digital spaces at an attractive multiple to comparable Italian transactions, providing us with enhanced financial flexibility,” said Marco Sala, CEO of IGT.
“We are particularly enthusiastic about IGT’s announcement as it accomplishes several key goals, including accelerating debt reduction efforts, increasing the lottery earnings mix relative to gaming, and reducing the long-standing Italy overhang, all of which should accrue towards improved valuation,” said John DeCree, an analyst with Union Gaming.
Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.
