Apollo Funds Secure IGT Acquisition to Revolutionize Gaming
Apollo Funds Complete Acquisitions of IGT and Everi
In a significant move in the gaming industry, Apollo (NYSE: APO) has announced the successful completion of its acquisitions of International Game Technology PLC’s (known for its Brightstar Lottery brand) Gaming & Digital Business and Everi Holdings Inc. This all-cash transaction, valued at around $6.3 billion, is set to create a powerhouse in gaming services and technology solutions.
Integration of Two Innovators
The integration of these two leading companies is expected to revolutionize the landscape of gaming, digital, and financial technology solutions. The combined enterprise will operate under the IGT brand name while maintaining the Everi name in targeted markets and specific product lines. This strategy aims to maximize brand strength and operational synergies in a competitive industry.
Organizational Structure and Vision
The newly formed enterprise will have a structured organization, comprising three key business units: Gaming, Digital, and FinTech. This division not only enhances operational clarity but also fosters a customer-first approach integrated within a people-first culture that champions talent, collaboration, and innovation. Nick Khin, currently the Interim CEO of IGT, shared insights on this defining moment, emphasizing that this union positions IGT to lead the gaming industry into the future.
Leadership Transition
Looking ahead, Hector Fernandez is anticipated to step into the role of CEO of IGT by the fourth quarter of 2025, following a customary non-compete timeframe. Until then, Mr. Khin will continue to guide the organization and will later transition to overseeing the Gaming unit. This leadership strategy is designed to ensure a smooth operational transition while aligning the vision for IGT’s innovative future.
Creating Value through Strategic Acquisitions
Daniel Cohen, a partner at Apollo, expressed optimism about the merger’s potential, indicating that combining two complementary businesses will yield a more agile and capitalized platform poised for sustained growth. The allies aim to leverage their combined strengths to provide unparalleled content and capabilities to serve a global customer base better.
Stockholder Updates and Financial Impact
As a result of the acquisition, Everi’s common stock is no longer listed on the New York Stock Exchange, with Everi shareholders set to receive $14.25 per share in cash. Meanwhile, International Game Technology PLC will be receiving $4.05 billion in gross cash proceeds, underscoring the transaction's substantial financial implications.
The Future of IGT and Apollo
IGT is now positioned as a leading global provider of integrated gaming solutions, with offerings that encompass gaming machines, game content, iGaming, sports betting, and financial technologies. This strategic merger is anticipated to drive innovation and efficiency, benefiting casino operators, digital platforms, and hospitality businesses worldwide. Headquartered in Las Vegas, IGT is committed to enhancing user experiences and operational efficiency across all service lines.
About Apollo Funds
Apollo is recognized as a high-growth, global alternative asset manager. With a vast portfolio spanning investment-grade credit to private equity, Apollo seeks to generate returns across the risk-reward spectrum. Their comprehensive platform has been aiding clients in achieving their financial goals while providing innovative solutions aimed at fostering growth. As reported recently, Apollo managed approximately $785 billion in assets, showcasing its robust market presence.
Frequently Asked Questions
What companies did Apollo acquire?
Apollo acquired International Game Technology PLC’s Gaming & Digital Business and Everi Holdings Inc.
What is the total value of the acquisition?
The acquisition is valued at approximately $6.3 billion.
What will the combined company be called?
The newly integrated entity will operate under the IGT brand name.
Who will lead the new organization?
Nick Khin is currently leading the organization as Interim CEO, with Hector Fernandez expected to take on the CEO role in late 2025.
How does this acquisition impact stockholders?
Everi stockholders will receive $14.25 per share in cash as part of the transaction.
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