Gaming and financial technology giants IGT and Everi join forces, aiming to create a global powerhouse in gaming and FinTech synchronization.
In a significant move, International Game Technology (IGT) and Everi Holdings have announced plans to merge, forming a comprehensive global gaming and fintech enterprise valued at approximately $6.2 billion. The transaction, which received unanimous approval from both IGT and Everi Boards of Directors, is expected to conclude in late 2024 or early 2025, subject to regulatory approvals, shareholder endorsements, and adherence to customary closing prerequisites.
Upon closing, IGT shareholders are expected to own around 54%, and Everi stockholders about 46% of the combined company. Notably, IGT's shareholders will continue to own one hundred percent of IGT's Global Lottery business post-merger.
The merger aims to empower IGT and Everi by unlocking opportunities in diverse sectors, spanning traditional gaming to fintech. According to Marco Sala, IGT Executive Chair of the Board, "The transaction will combine two robust gaming platforms with complementary capabilities, geographic footprints, and enhanced growth opportunities." Vince Sadusky, IGT CEO, added that the combination of the two businesses results in a comprehensive and diverse product offering, addressing more aspects of the gaming ecosystem across land-based gaming, iGaming, sports betting, and fintech.
The strategic rationale behind the merger is to create a new global leader in gaming and fintech, combining complementary strengths to enhance scale, innovation, and market reach. The merger anticipates generating over $800 million of annual Adjusted cash flow in the second year following the closing, including realized synergies. The projected pro forma 2024 revenue of the merged company is approximately $2.7 billion, with a projected pro forma 2024 Adjusted EBITDA of approximately $1 billion.
The merged company is expected to offer a comprehensive and diverse product portfolio, including land-based gaming, iGaming, sports betting, and fintech. The creation of separate gaming and lottery companies, each with experienced management teams and simplified business models, better positions each company to service customers and create significant value for stakeholders.
One of the key benefits of the merger is enhanced scale and market presence. Combining IGT’s established global footprint in gaming and lotteries with Everi’s strengths in gaming and financial technology creates a larger, more diversified combined entity capable of tapping into wider markets worldwide. The merger also brings complementary business portfolios, with IGT’s Global Gaming and PlayDigital businesses bringing strong digital gaming and lottery capabilities, while Everi contributes fintech solutions and complementary gaming products, which together improve product offerings and cross-selling opportunities.
Operational efficiencies and cost synergies are another expected benefit. Integrating overlapping functions and streamlining operations should reduce costs, improve margin profiles, and optimize resource allocation. The merger is also expected to foster enhanced product innovation by combining digital and physical gaming experiences, supported by increased investments enabled by a larger scale.
Finally, the combined entity is better positioned financially to invest in technology, risk management, and growth initiatives, enhancing shareholder value with improved returns. In summary, the merger aligns to build a stronger, more diversified leader in gaming and fintech with better geographic coverage, comprehensive product offerings, operational scale, and innovation capabilities delivering long-term growth and value.
This merger, complementing strengths in traditional gaming, fintech, and business sectors, seeks to establish a global leader in gaming and fintech. By having IGT and Everi shareholders owning approximately 54% and 46% of the combined company respectively, the union forges a comprehensive product portfolio, encompassing land-based gaming, iGaming, sports betting, and fintech.
With the merger, the new entity anticipates generating over $800 million of annual Adjusted cash flow, benefiting from combined operational efficiencies, cost synergies, and enhanced product innovation. The union aims to leverage enhanced scale and market presence, enabling tapping into wider markets worldwide and optimizing resource allocation.
