The $6.3 billion acquisitionof International Game Technology (IGT) and Everi Holdings by Apollo Global Management is one step closer to finalization. Following a unanimous vote by the Nevada Gaming Commission, the merger now moves toward its closing, scheduled for early July 2025. This deal, which will combine IGT’s gaming and digital sectors with Everi, represents a major shift in the gaming industry, setting the stage for a new powerhouse in gaming technology.

New beginnings for IGT under Apollo’s guidance:

The approval by the Nevada Gaming Commission follows a series of regulatory approvals across 36 jurisdictions. With this critical step completed, the only remaining hurdle is a final review by the Pennsylvania Gaming Control Board, which is expected to take place shortly. The merger, led by Apollo through its vehicle, Voyager Voteco LLC, will combine two of the most significant players in gaming technology, creating a unified entity focused on gaming systems, digital platforms, fintech, and payments.

IGT, a well-established name in the gaming industry, has been a part of Nevada’s landscape since 1975. However, after the acquisition by Apollo, the company will undergo a rebranding and restructuring. The new entity will retain the IGT name but will shift its focus primarily to digital and gaming technologies, marking the next phase in its evolution. This change follows IGT’s earlier plans to split its gaming operations from its lottery business. As part of the restructuring, the lottery arm of the business will be rebranded as Brightstar Lottery, with its headquarters in Italy.

Apollo, which has long had a presence in Nevada through its ownership of The Venetian and Palazzo resorts, has pledged to invest heavily in IGT’s future. Daniel Cohen, a partner at Apollo, expressed confidence in the company’s future potential, noting the robust portfolios of both IGT and Everi. Cohen explained, “We are creating a scaled gaming technology platform with actionable levers to create growth, combining two leading franchises in gaming systems, fintech, and igaming.”

The merged company will have three key divisions: gaming, digital, and fintech. This diversified structure is designed to maximize revenue opportunities, providing a steady stream of recurring income while positioning the new entity as a leader in the gaming industry, directly competing with other major players like Light & Wonder and Aristocrat.

According to the Las Vegas Review-Journal, as part of the restructuring, Nicholas Khin, the current president of global gaming at IGT, will serve as interim CEO of the new company. However, Hector Fernandez, former CEO of Aristocrat Gaming, is set to take over as CEO once his non-compete agreement concludes in the fourth quarter of 2025. Fernandez’s leadership experience and industry knowledge are expected to drive the next phase of growth for IGT.

Cohen also highlighted Apollo’s long-term vision for the merged company, emphasizing its focus on creating value in a private setting without the pressure of quarterly stock fluctuations. “We’re not beholden to quarter-to-quarter results when we make our investments. Our focus is on long-term value creation,” Cohen stated, underlining Apollo’s strategy of enhancing the companies it acquires before considering public offerings.

Financial outlook and growth potential:

The merger is expected to generate approximately $2.6 billion in revenue and $1.1 billion in EBITDA, with a significant portion of these figures coming from IGT’s existing business. Everi, which will contribute around one-third of the total revenue, brings valuable assets in fintech and gaming solutions that complement IGT’s operations. The deal also includes a significant debt structure, with $4.3 billion raised in financing to support the merger.

With the combined companies expected to generate over 80% of their revenue from recurring sources, Apollo sees significant potential for growth, especially in digital gaming and iGaming. Cohen emphasized that the merger would close the existing margin gap with industry peers, delivering higher-tech products and better customer experiences. The merger’s strategic focus will ensure that the new IGT can compete effectively with other large players in the industry.

Everi shareholders will receive $14.25 per share in cash, a 56% premium over Everi’s closing share price before the announcement of the merger. IGT will use much of the cash proceeds from the deal to pay down debt, further strengthening its financial position. Apollo’s strong backing, alongside other investors like the De Agostini family, ensures that the new entity will have ample capital to support its transformation and future growth initiatives.

In addition to the merger, IGT has recently signed an eight-year agreement with Atlantic Lottery to implement its advanced IntelligenEVO video lottery central system technology across Atlantic Canada. This deal marks another significant step in IGT’s expansion of its portfolio, focusing on delivering cutting-edge technology solutions for lotteries and enhancing system performance and player experience. The partnership is poised to deliver value to the Atlantic Lottery and strengthen IGT’s position as a leader in the gaming technology market.

The merger’s final approval is now set to take place in July, after which IGT and Everi will begin the process of integrating their operations under the guidance of Apollo Global Management. This deal marks a significant reshaping of the gaming industry, positioning the new IGT as a leader in technology-driven solutions across gaming systems, fintech, and digital platforms.