IGT, Everi Stocks Climb In Pre-market On $6.3 Bln Takeover Deals With Apollo Funds

(RTTNews) - Apollo Global Management, Inc. (APO) announced Friday its agreements to simultaneously acquire International Game Technology PLC's (IGT) Gaming & Digital business, as well as Everi Holdings Inc. (EVRI) in an all-cash deal that values the acquired businesses at around $6.3 billion on a combined basis.

In the pre-market activity on the NYSE, IGT shares were gaining around 19 percent to trade at $24, and Everi shares were gaining around 37 percent to trade at $12.52.

A newly formed holding company owned by funds managed by affiliates of Apollo Global will make the purchases.

IGT and Everi in late February had entered into definitive agreements, pursuant to which IGT would separate the IGT Gaming business by way of a taxable spin-off to IGT shareholders and then immediately combine such business with Everi.

Under the new deal terms with Apollo, the Apollo Funds will acquire IGT Gaming and Everi. Following closing, IGT Gaming and Everi will be privately owned companies that are part of one combined enterprise, which will be headquartered in Las Vegas.

Everi stockholders will receive $14.25 per share in cash, representing a 56 percent premium over Everi's closing share price on July 25. IGT will receive $4.05 billion of gross cash proceeds for IGT Gaming.

The transaction is expected to be completed by the end of the third quarter of 2025. IGT shareholder approval is not required for the transaction.

IGT expects significant portions of the cash proceeds to be used to repay debt and to be returned to shareholders.

Italy's De Agostini S.p.A., the majority shareholder of IGT, has agreed to make a minority equity investment in the combined enterprise at the deal closure.

After selling the IGT Gaming to the Apollo Funds, IGT will change its name and stock ticker symbol, becoming a premier pure play lottery business.

IGT plans to release second-quarter results on July 30, while Everi will release its second quarter results no later than August 9.