©Reuters.
LONDON and LAS VEGAS – In a significant move in the gaming and fintech industries, International Game Technology PLC (NYSE: NYSE:) and Everi Holdings Inc. (NYSE: NYSE:) have announced a definitive agreement for a business combination. The agreement, approved by both companies’ boards of directors, will combine IGT’s Global Gaming and PlayDigital businesses with Everi to create a diversified company with a broad range of operations across a variety of gaming verticals.
IGT will separate its Global Gaming business and PlayDigital business and then merge with Everi. The combined corporate value of this transaction will be approximately $6.2 billion. Upon completion, IGT shareholders will own approximately 54% of the new company and Everi shareholders will own approximately 46%. The merger is expected to be completed by the end of 2024 or early 2025.
The combined company will boast a comprehensive portfolio of products and services, including land-based gaming, iGaming, sports betting, and fintech solutions. Substantial revenue and adjusted EBITDA are expected, with 2024 projections of approximately $2.7 billion and $1 billion, respectively. The merger is expected to generate significant synergies with an estimated $85 million in cost savings and capital expenditure efficiencies.
Vince Sadusky, IGT’s current CEO, will lead the new company, and Everi Executive Chairman Michael Lambolz will serve as Chairman of the Board. The combined company will be headquartered in Las Vegas, will operate under the name International Game Technology, Inc., and will trade on the NYSE under the ticker IGT.
The transaction will leave IGT with a purely global lottery business, and IGT will continue to focus on this area. Financing for the deal includes a $3.7 billion commitment, as well as a $500 million revolver provided by Deutsche Bank and Macquarie Capital.
The merger is subject to regulatory approvals, approval of Everi stockholders and IGT stockholders and other customary closing conditions. De Agostini SpA, which controls approximately 60% of IGT’s voting rights, has agreed to support the transaction.
The information in this article is based on the press release.
Investment Pro Insights
Following the announcement of the merger between International Game Technology PLC (IGT) and Everi Holdings Inc., investors are closely scrutinizing IGT’s financial metrics to gauge the potential impact on their portfolios. IGT has a market capitalization of $5.15 billion and currently sports a relatively high P/E ratio of 51.54, according to data from InvestingPro. This suggests that IGT is trading at a high earnings multiple, which is an important consideration for investors looking for high-value opportunities.
Despite its high P/E ratio, the company has managed to maintain an impressive nine consecutive years of dividend payments, which is attractive to income-oriented investors. The current dividend yield is 3.11%, with the last dividend ex-date recorded on November 28, 2023. Furthermore, analysts predict that IGT will continue to generate profits this year, building on the profitability it has shown over the past 12 months.
Investors should also note that the company’s stock price movement has been very volatile, with a 6-month total stock return of -19.09%, indicating potential risks for short-term traders. . However, InvestingPro’s fair value estimate of $31.66 is higher than the previous closing price of $25.66, so there may be room for growth in the stock’s value.
For those looking to learn more about IGT’s financial health and future prospects, InvestingPro provides additional insight. Four more He InvestingPro tips are available that provide further guidance on whether IGT’s current market performance is in line with your investment strategy.Use coupon code pro news 24 To access these valuable insights, you can save an additional 10% on annual or biennial Pro and Pro+ subscriptions.
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