Apollo Takes the Reins in Gaming Industry Shake-up

In a surprising move, Apollo has stepped in to reshape the gaming industry landscape. The investment firm is acquiring IGT’s gaming division and merging it with Everi, a leader in casino technology and payments. This combined entity will operate as a privately held company, significantly departing from the original plans.

The deal is valued at approximately $6.3 billion. Every shareholder will receive a hefty cash payout, while IGT will pocket $4.05 billion. This comes after IGT had previously announced a merger of its gaming and digital businesses with Everi, but that agreement has now been scrapped in favour of the Apollo deal.

A Change of Plans

The new arrangement will see IGT’s lottery business operate as a separate, publicly traded company under a new brand. Vince Sadusky, IGT’s CEO, will head up this division. Meanwhile, the gaming business, combined with Everi, will be led by a new management team. Fabio Celadon, IGT’s strategy chief, will take the reins as CFO while Everi’s CFO Mark Labay, will oversee integration.

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Industry Reactions and Market Impact

Both IGT and Everi have expressed enthusiasm for the deal. Apollo’s deep pockets and experience in the gaming sector are seen as a catalyst for growth. The market has responded positively to the news, with shares of both companies surging.

While the dust is still settling on this major industry shake-up one thing is clear the gaming world is about to transform significantly.

Evero president and CEO Randy Taylor Said: 

“Apollo is a respected investment firm with a strong track record in the gaming sector and they recognise the value of our business and see significant potential in bringing IGT Gaming and Everi together.

“Under private ownership, we believe we will be better positioned to accelerate the integration of our two organisations for the benefit of our customers and employees.”

IGT will then make its first-half results announcement and, as scheduled, hold an investor call on July 30. Nevertheless Everi will not have a call and will instead make its results public by August 9th.

Everi’s stock surged 40.15% in pre-market trading to $12.81 per share after the announcement, while IGT’s stock increased 16.57% to $23.50 per share in New York before the markets opened.