Apollo Global Management has just acquired Everi Holdings and IGT Gaming, marking a pivotal change and strategic move that will cement Apollo's hold on the gaming industry. The sale, which was in cash, was an amazing $6.3 billion, and it will make both enterprises privately owned under the Apollo brand.

In a landmark transaction, International Game Technology PLC and Everi Holdings Inc. have just announced that Apollo Global Management Inc. will acquire their gaming & digital businesses in a deal valued at $6.3 billion - which is all in cash. This agreement will result in Everi and IGT Gaming becoming privately-owned entities under a combined organization managed by Apollo.

The move's unanimous board approval

The boards of both companies have unanimously approved the transaction, highlighting the strategic benefits of the consolidation. Vince Sadusky, Chief Executive Officer of IGT PLC, expressed optimism about the new partnership, stating, "Our new agreement represents a positive evolution of our previously announced transaction with Everi and a successful culmination of the strategic review process that IGT launched last year." He added that with the Apollo Funds, they have found a partner that recognizes the strength and value of IGT Gaming and knows its talent and position in the industry.

Sadusky further emphasized that the transaction would enable IGT Gaming to invest in as well as enhance its core segments, offering customers a more comprehensive portfolio of offerings. He further added, "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."

The transition to private ownership

The acquisition will see IGT's majority shareholder, De Agostini S.p.A, acquiring a minority equity investment in the brand-new enterprise. This move signals confidence in the future prospects of the unified companies under Apollo's management.

Everi Holdings, a major supplier of tech solutions for the casino floor, developing gaming machines and content and systems for land-based, bingo, and igaming operators, is poised to benefit significantly from this merger. Randy Taylor, President and Chief Executive Officer of Everi, remarked, "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."

Taylor highlighted the potential for growth and innovation, stating that as it joins forces with IGT Gaming, it fully expects to continue to lead and innovate as well as provide unparalleled value to its customers as a stronger player in the FinTech, global gaming, and digital industry. Under this private ownership, it believes that it will be better positioned to accelerate the integration of its two organizations for the benefit of its customers and employees.

Strategic synergy and future outlook

The combined strengths of IGT and Everi under Apollo's ownership are expected to create a formidable presence in the gaming and digital industry. IGT, with over 11,000 workers worldwide, is a global leader in the gaming sector. The merger with Everi, known for its robust technology solutions, is anticipated to enhance the collective ability to innovate and provide comprehensive solutions across various gaming platforms.

Apollo Global Management's acquisition reflects a strategic move to consolidate industry leaders and leverage their combined expertise and resources. The private ownership model is expected to provide greater flexibility and focus on long-term growth and integration strategies, benefiting customers and stakeholders alike.