BREAKING NEWS: GTECH to acquire IGT in $4.7bn deal

BREAKING NEWS: GTECH to acquire IGT in $4.7bn deal

Wednesday, July 16, 2014 Totally Gaming

GTECH today announced that it has entered into a definitive merger agreement with International Game Technology valued at roughly $4.7bn. Under terms of the transaction, IGT and GTECH will combine under a newly formed holding company organised in the United Kingdom (NewCo).

IGT shareholders will receive a combination of $13.7 in cash plus 0.1819 NewCo shares (subject to adjustment) for each share of IGT common stock, equal to an aggregate value of $18.25 per IGT share.  GTECH shareholders will exchange each of their existing GTECH shares for one newly issued ordinary share of NewCo. The aggregate transaction value is approximately $6.4bn inclusive of the assumption of approximately $1.75bn in existing IGT net debt.

Commenting on the transaction, Marco Sala, Chief Executive Officer of GTECH said, “This transaction is transformational for our business. With limited overlap in products and customers, the combined company will enjoy leading positions across all segments of the gaming landscape. It will increase our global scale and with a full suite of offerings and robust customer relationships across the client spectrum, the new company will have unparalleled capabilities to address the ongoing convergence across global gaming segments. Our expertise across these segments and greater ability to invest in R&D will improve player experiences and benefit our government and business clients. The transaction will significantly enhance our cash flow and financial strength, and provide clear and achievable cost and revenue synergies.”

“We are extremely pleased to reach a definitive merger agreement with GTECH as a result of our exploration of strategic alternatives to maximize shareholder value. This strategic agreement positions us to further transform the industry while providing meaningful benefit and value to our customers, employees and shareholders,” said Patti Hart, IGT CEO.

 

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