Casino equipment manufacturer and digital gaming content provider International Game Technology Plc (IGT) has announced that its Board of Directors has “Evaluation of possible strategic alternatives” for the Group’s global Gaming and PlayDigital segments: “to unlock the full value of the IGT portfolio.”
“IGT’s Board of Directors is considering a wide range of potential alternatives, including but not limited to a sale, merger or spin-off, as well as retaining and further investing in the global gaming and PlayDigital businesses.” said the signature in a press release on Thursday.
Lottery giant behind the name IGT
Formerly known as gtech Spa and Lottomatika spa Until the acquisition of Si Red by Las Vegas, Nevada-based company IGT in 2015, the group was a multinational gaming company that manufactured various gaming technologies, including slot machines. Although headquartered in the UK, the company has major offices in Rome, Providence, Rhode Island and Las Vegas and is 51 percent controlled by De Agostini, an Italian company founded in 1901.
The company in general, including the World’s largest lottery operator by gross revenuegenerated sales of over 400 billion US dollars.
IGT CEO Vince Sadusky said in a statement that the company is “remaining”focused on delivering on its growth targets and multi-year targets.” as described in November 2021 and reviews and evaluates strategic alternatives for the gaming and digital segments. At the time, the company announced that its betting and digital businesses would be included in a possible stock exchange listing.
“Regardless of the outcome of this process, IGT is well positioned to achieve its long-term growth and revenue goals.”Sadusky said in Thursday’s announcement.
Mediobanca, Deutsche Bank And Macquarie Capital were hired as financial advisors Sidley Austin And White & Shell We act as legal advisors in a possible IPO.
Global Gaming Revenue for the group during the first trimester from 2023 increased by more than 21% compared to the previous year $389 million. Gaming and digital revenue was $47 million a year ago and has grown to $55 million. The first three months of the year generated $23 million net income to shareholders with sales up almost 1% and barely exceeded $1,060 million.
It appears the company has plenty of cash and has an increasingly strong credit profile. From January 1, 2023 through the end of the first quarter, net debt was reduced to $5.12 billion from $5.15 billion as the company began the year with “significant cash flow generation and continued improvements” to its credit profile .
No decision was made
On Thursday, the company noted that “No decision has yet been made as to an alternative, there is no timeline for consideration and there can be no assurance that exploration of strategic alternatives will result in a transaction.”
Marco Sala, the executive president, was quoted in the information release: “Over the past three years, IGT has sharpened its strategic focus by reorganizing around core product verticals, monetizing non-core assets, reducing structural costs and significantly improving its credit profile.”
Added room: “We believe that the intrinsic value of IGT’s market-leading businesses and diversified cash flow profile is not currently reflected in our stock price and it is time to explore opportunities that could enhance IGT’s shareholder value.
Stock prices rose at the close of business on Thursday almost 4% after the announcement to $31.50.
Gtech/Lottomatica for decades competed and sometimes cooperated with Scientific Games, the other world market leader in lotteries. However, Scientific Games was restructured and renamed Light & Wonder. Among the most important changes were the Selling your lottery business, which still goes by the Scientific Games name, for around $5 billion and divested its sports betting business for around $800 million. The share price of light and wonder it closed Thursday at $66.97, more than double IGT’s.
Spring: IGT considering possible sale and spin-off of gaming and digital unitsGGRAsia, June 9, 2023