International Game Technology PLC (IGT) announced that it has reached an agreement with Apollo Global Management Inc for the sale of its Italian business of B2C gaming machines for 950 million euros, a transaction that is expected to be completed in the first half of 2021 and whose revenues they will be used primarily to reduce debt.
According to a press release from IGT, its subsidiary Lottomatica Holding has signed an agreement to sell 100% of the share capital of Lottomatica Videolot Rete and Lottomatica Scommesse, companies in charge of their Italian businesses of B2C gaming machines, sports betting and digital games, to Gamenet Group, a subsidiary of funds managed by an affiliate of Apollo Global Management, a leading global alternative investment manager who recently tried to buy William Hill.
On this transaction, Marco Sala, executive director of IGT, said:
"The transaction enables IGT to monetize its leadership positions in the Italian B2C gaming machine, sports betting, and digital spaces at an attractive multiple to comparable Italian transactions, providing us with enhanced financial flexibility."
On the other hand, according to IGT, the transaction values the companies sold at an enterprise value of approximately € 1.1 billion and highlights that both generated around 207 million euros in aggregate adjusted EBITDA in 2019, placing the transaction in the upper band of valuation ranges achieved. by the most recent Italian benchmarks.
The sale price is 950 million euros, which will be paid as follows:
- 725 million euros payable at closing
- 100 million euros payable on December 31, 2021
- 125 million euros payable on September 30, 2022.
In this regard, IGT explains that deferred payments are not subject to any other condition than closing and are guaranteed by a letter of capital commitment from the funds managed by Apollo.
Likewise, it is worth noting that the IGT Board of Directors unanimously approved the transaction, which is subject to regulatory approvals.
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