Apollo Funds places $6.3bn bid for IGT and Everi

A new major acquisition is leading to a tectonic shift in the gambling industry, with Apollo Funds now placing a bid for IGT and Everi’s combined assets, following similar big shifts in the industry involving Bally’s Corporation and Stakelogic, a Dutch online casino game developer.

Apollo Funds to buy out IGT and Everi, take them private

Apollo Global Management has confirmed that Apollo Funds has agreed to stump up for an all-cash deal valued at $6.3bn to acquire IGT’s Gaming & Digital business and Everi. Both entities will then proceed as private companies within a larger entity, once the deal is finalized and everyone is on board to proceed.

In the meantime, the lottery business will remain a publicly traded entity with a new ticker symbol, the companies explained. The lottery business will operate outside the newly formed enterprise. This is not the first time the names of Everi and IGT have been evoked this year, as in February, the companies agreed to merge their operations, with the resulting entity said to carry a $6.2bn value price.

It was at that time that the companies agreed to merge their gaming businesses and spin off the lottery arm, but this agreement is now superseded by the buyout bid tabled by Apollo Funds which will be acquiring the assets instead.

Essentially, the new deal proposes to take IGT and Everi private, but the prospect of a buyout has already impacted the company’s valuations, with IGT’s stock notching up a 20% gain whereas Everi registered a 40% jump as of closing time on Friday, July 26.

Deal still needs to pass shareholder and regulatory scrutiny

Presently, the deal hinges on several factors. First, there are Everi’s shareholders who have to take a vote. The deal is expected to generate a $1.2bn payout to shareholders, Reuters, a media publication, estimates. This also includes $1bn in debt, pushing the valuation to $2.2bn.

IGT expects to receive $4.05bn that it will use to pay down debt. The deal will also have to undergo regulatory scrutiny. If all goes well, the deal will be completed in the third quarter of 2025. Should all go well, the newly formed combined enterprise will operate out of Las Vegas, Nevada.

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