Apollo Bets $6.3B on Gaming Industry with IGT and Everi Deal

Everi Holdings Inc. EVRI, International Game Technology IGT, and Apollo Global Management, Inc. APO shares are trading higher today.

IGT’s Gaming & Digital business and Everi will be simultaneously acquired by a newly formed holding company owned by funds managed by affiliates of Apollo in an all-cash transaction that values the acquired businesses at approximately $6.3 billion on a combined basis.

Under the new agreements, Apollo Funds will acquire both IGT Gaming and Everi. After the deal closes, the combined entity will be a privately owned company.

As per the terms, Everi shareholders will receive $14.25 per share in cash, reflecting a 56% premium over its July 25, 2024 closing price.

IGT will receive $4.05 billion in gross cash proceeds for IGT Gaming, with plans to use a substantial portion for debt repayment and shareholder returns.

The deal is expected to close by the end of third quarter of 2025. After the sale of IGT Gaming to Apollo Funds, IGT will rebrand and change its stock ticker symbol, transitioning to a leading pure-play lottery company.

Upon closing of the transaction, Everi’s common stock, par value $0.001 per share, will be delisted from the New York Stock Exchange.

Vince Sadusky, IGT PLC CEO, said, “After the closing of this transaction, IGT’s shareholders will continue to own one hundred percent of IGT’s Global Lottery business, which will be positioned for long-term success as a pure-play global lottery player with a more focused, compelling business model and optimized capital structure to drive long-term shareholder value.”

On February 29, IGT and Everi announced that they had entered into definitive agreements under which IGT would separate the IGT Gaming business by way of a taxable spin-off to IGT shareholders and then immediately combine such business with Everi. 

Randy Taylor, Everi President and CEO, added, “We believe this transaction maintains the integrity and strong strategic rationale of our original agreement with IGT, but now also provides significant and certain value to our stockholders as we move forward with the Apollo Funds as our partner. By joining forces with IGT Gaming, we expect to continue to lead, innovate, and provide unparalleled value to our customers as a stronger player in the global gaming, FinTech, and digital industry.”

The acquisitions of IGT Gaming and Everi by the Apollo Funds are interdependent and subject to customary conditions, including regulatory approvals and Everi stockholder approval.

As of the first quarter, Apollo’s cash and equivalents stood at $2.47 billion.

Price Action: IGT shares are trading higher by 16.1% at $23.40, EVRI shares are up 41.5% at $12.93 and APO shares rose 0.99% at $122.86 at the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo by Florian Olivio for Unsplash