Unifying Forces: IGT, Everi Integration Redefines Global Gaming and FinTech Landscape

The recent announcement of the merger of IGT Global Gaming and PlayDigital with Everi has generated a significant amount of interest. This groundbreaking event marks a pivotal moment as two industry giants join forces to create a powerful force that promises to revolutionize the landscape of both gaming and financial technology. With this integration on the horizon, a new era of innovation, collaboration, and opportunity is on the horizon that will transform the way we experience and interact with gaming and financial services on a global scale.

Rationale Behind Integration

In short, the two companies will be able to help each other with their strengths, which together are stronger and more valuable. The combination results in a comprehensive and diverse product offering that addresses more aspects of the gaming ecosystem across land-based gaming, iGaming, sports betting and financial technology. The creation of separate gaming and lottery companies, each with an experienced management team and simplified business models, improves each company’s position to serve customers and creates significant value for stakeholders,” said Vince Sadusky, CEO of IGT.

The merger will combine two businesses that are highly complementary, creating a global, land-based and digital gaming, financial and systems, and financial technology business. We expect the combined company to provide a full range of products and services that will attract gambling visitors, although you can already see 5000+ online slots demos on SlotsUP.

The transaction was approved unanimously by all voting members of the IGT board of directors and the Everi board of directors. The transaction is subject to regulatory approvals, the approval of Everi shareholders and IGT shareholders, and other customary closing conditions. The transaction is expected to close in late 2024 or early 2025. De Agostini SpA, which controls approximately 60% of the voting power of IGT shares, has entered into a Voting and Support Agreement in connection with the transaction.

The Main Reason Why It Was Worth Merging 

The combination is expected to create significant long-term value for the combined company’s shareholders in several ways. Firstly, the combination will allow to take advantage of the synergies between the different areas of activity of both companies, which will lead to cost optimization and increased production efficiency. In addition, there is every reason to believe that the combined company will be able to introduce new technologies and innovative solutions in the field of gaming and financial technologies, such as the unique classic Solar Disc online slot machine. In addition, the synergies arising from the merger may also help to strengthen the company’s position in the international market and expand its global presence. Thus, the merger is expected to create significant additional value for shareholders, which will confirm the high potential of the newly created company.

• Broad and diverse product portfolio – one-stop access to land-based gaming, iGaming, sports betting and financial technology
• Impressive financial scale with projected pro forma revenues in 2024 of approximately US$2.7 billion and projected pro forma adjusted EBITDA in 2024 of approximately US$1 billion
• A large installed base of approximately 70,000 EGMs today generates significant recurring revenues
• Approximately $85 million in identified cost savings and opportunities to improve capital expenditure efficiency
• The ability to leverage the global sales team and distribution network of IGT Global Gaming and PlayDigital to provide Everi’s existing content and fintech solutions to customers outside the United States.
• Forecasted net debt of 3.2-3.4 times by 2024 Adjusted EBITDA leverage ratio (including current rate cost synergies) with the ability to reduce debt quickly
• Expect to generate over $800 million of annualized adjusted cash flow in the second year after closing, including realized synergies

Impact On Industries

In general, the integration of these companies may result in positive changes in the industry, contributing to the development of new products, improving business efficiency and increasing market competitiveness.

1. Development of innovative products: Combining resources and expertise in gaming and financial technology will help create and implement new products and services that meet the needs of the modern market.
2. Improved efficiency and cost optimization: Sharing resources will optimize production processes and reduce management costs, which will have a positive impact on business efficiency.
3. Increased competitiveness: The combined company will be better positioned to compete in the market, thanks to a broader range of products and services, as well as improved marketing and advertising capabilities.
4. Expansion of global presence: The Merger will be able to expand its international presence by strengthening its positions and developing new markets, which will contribute to the growth of sales and business volumes.
5. Increasing innovation and improving services: The integration of various technological solutions and fintech expertise will allow for the creation of new innovative solutions and improved customer service in the gaming and financial services sectors.

Future Outlook

The separation of IGT Global Gaming and PlayDigital is expected to be taxable to IGT shareholders for U.S. federal income tax purposes.

Following the closing, current IGT PLC CEO Vince Sadusky will lead the combined company, which will be headquartered in Las Vegas, and will be guided by a best-in-class management team and senior operational leadership from both IGT and Everi. IGT’s current Executive Vice President of Strategy and Corporate Development, Fabio Celadon, will serve as the combined company’s Chief Financial Officer. Randy Taylor, the current CEO of Everi, will join the board of directors of the combined company. Mark Labey, Everi’s current CFO, will take on the role of Chief Integration Officer.

Michael Rumboltz, Executive Chairman of Everi, will serve as Chairman of the combined company’s board of directors, which will consist of eleven members, including six independent directors, in accordance with the listing standards of the New York Stock Exchange. Six of the eleven members will be initially appointed by IGT, including CEO Vince Sadusky, and three of whom will be appointed by De Agostini SpA pursuant to an investor rights agreement. The remaining directors will be initially appointed by Everi, which will include Everi President and CEO Randy Taylor.

Summary

Combining the expertise and resources of two large companies will create a unique force that will be able to change the landscape of the gaming and financial technology industries by offering innovative solutions and improved services to customers. Thus, the integration will be a step towards achieving common goals and creating additional value for both the company and its shareholders, contributing to the development and change in the gaming and financial technology industries.

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