IGT has announced the sale of its Italian B2C sports betting, gaming machine, and digital gaming business for €950M. 

UK-based International Game Technology PLC (IGT) is offloading its interest in Lottomatica Scommesse S.r.l. and Lottomatica Videolot Rete S.p.A. to Gamenet Group S.p.A., a subsidiary of funds managed by an affiliate of Apollo Global Management, Inc.

The cash deal is valued at €950M, and will see €725M payable at closing, €100M payable in December 2021, and €125M payable in September 2022. 

IGT’s Board of Directors has unanimously approved the transaction, which remains subject to customary closing conditions and regulatory approvals. The transaction is expected to close in the first half of 2021. 

Discussing the news IGT CEO, Marco Sala, said:

“The transaction enables IGT to monetize its leadership positions in the Italian B2C gaming machine, sports betting, and digital spaces at an attractive multiple to comparable Italian transactions, providing us with enhanced financial flexibility.

“Aligning with our recent reorganization, the favourable 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.”

Proceeds from the sale will largely be used to pay down IGT’s debt, which stood at some €7.24B on 30 September 2020.

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