IGT buying online social gaming company for $500 million

International Game Technology has reached agreement to acquire Double Down Interactive, an online social gaming company, for $500 million, the Las Vegas-based company announced Thursday.

Double Down Interactive is the developer of the DoubleDown Casino found on Facebook. Launched in April 2010, DoubleDown has 4.7 million monthly active users, up from 3.3 million in October, according to AppData.com.

DoubleDown offers blackjack, slots, slot tournaments, video poker, and roulette.

"As technological innovations increasingly influence consumer behavior, social dynamics are quickly transforming entertainment and gaming experiences everywhere," IGT Chief Executive Officer Patti Hart said in a statement.

Under the deal, IGT will pay DoubleDown $250 million in cash, $85 million in retention payments over the next two years and as much as $165 million in cash payable over the next three years, subject to certain financial targets.

IGT shares rose 52 cents, or 3.01 percent, Thursday to close at $17.78 on the New York Stock Exchange.