British lottery and gaming machines innovator International Game Technology (IGT) has announced the signing of an agreement that is to see it offload a pair of wholly-owned Italian subsidiaries for approximately €950 million ($1.15 billion) in cash.
The New York-listed firm used an official Monday press release to detail that the arrangement for its Lottomatica Videolot Rete SpA and Lottomatica Scommesse Srl subordinates will involve buyer Gamenet Group SpA handing over an initial €725 million ($878.52 million) before making a subsequent €100 million ($121.17 million) payment by the end of next year. It stated that the coming sale ‘remains subject to customary closing conditions including regulatory approvals’ and will moreover oblige the entity of private alternative investments specialist Apollo Global Management Incorporated to part with a final disbursement of €125 million ($151.47 million) by September 30, 2022.
IGT additionally revealed that it expects the first stage of this arrangement to have been completed by the end of June and will subsequently utilize the proceeds from the sale of its Italian business-to-consumer gaming machine, sportsbetting and digital gaming establishments to reduce overall company debt.
Marco Sala (pictured) serves as the Chief Executive Officer for IGT and he used the press release to declare that his firm’s board of directors has ‘unanimously approved the transaction‘ so as to authorize the disposal of enterprises that last year chalked up aggregated adjusted earnings before interest, tax, depreciation and amortization of about €206 million ($249.83 million).
Read a statement from Sala…
“The transaction enables IGT to monetize its leadership positions in the Italian business-to-consumer gaming machine, sportsbetting and digital spaces at an attractive multiple to comparable Italian transactions, providing us with enhanced financial flexibility. Aligning with our recent reorganization, the favorable rebalancing of our business and geographic mix reframes and simplifies our priorities while improving the company’s future profit margin, cash flow generation and debt profile.”