GTECH TO ACQUIRE IGT FOR $6.4BN
No sooner had IGT announced its move to sell, GTECH quickly became the front- runner to acquire the US gaming giant Nevada - Casino Suppliers
Italy’s GTECH S.p.A., has entered into a definitive merger agreement with International Game Technology, headquartered in Las Vegas, Nevada. Under the terms of the transaction, IGT and GTECH will combine under a newly formed holding company organised in the UK (NewCo). IGT shareholders will receive a combination of $13.69 in cash plus 0.1819 NewCo shares (subject to adjustment) for each share of IGT common stock, equal to an aggregate value of $18.25 per IGT share. GTECH shareholders will exchange each of their existing GTECH shares for one (1) newly issued ordinary share of NewCo. The aggregate transaction value is approximately $6.4bn inclusive of the assumption of approximately $1.75bn in existing IGT net debt.
The transaction creates the world’s largest end- to-end gaming company, uniquely positioned to capitalise on opportunities across global gaming market segments. The new company combines best-in-class content, operator capabilities, and interactive solutions, and joins IGT’s game library and manufacturing and operating capabilities with GTECH’s gaming operations, lottery technology and services. The agreement drives scale across all businesses, geographies and product lines and is expected to achieve more than $280m in run-rate synergies by the third year following closing of the transaction.
Commenting on the transaction, Marco Sala, Chief Executive Officer of GTECH S.p.A. said: “This transaction is transformational for our business. With limited overlap in products and customers, the combined company will enjoy leading positions across all segments of the gaming landscape. It will increase our global
scale and with a full suite of offerings and robust customer relationships across the client spectrum, the new company will have unparalleled capabilities to address the ongoing convergence across global gaming segments. Our expertise across these segments and greater ability to invest in R&D will improve player experiences and benefit our government and business clients. The transaction will significantly enhance our cash flow and financial strength, and provide clear and achievable cost and revenue synergies.”
“We are extremely pleased to reach a definitive merger agreement with GTECH as a result of our exploration of strategic alternatives to maximise shareholder value. This outstanding combination of two global leaders truly defines the future of gaming entertainment. Together we are uniquely positioned to provide the industry’s broadest and most innovative portfolio of best-in-class products, solutions and services. This strategic agreement positions us to further transform the industry while providing meaningful benefit and value to our customers, employees and shareholders,” said Patti Hart, IGT CEO. “Our dedicated employees’ commitment and innovation have enabled us to capitalize upon this opportunity, and we look forward to integrating with the GTECH team to achieve even greater levels of success.”
The combined entity would have more than $6bn in pro forma revenues and in excess of $2bn in pro forma EBITDA based on the last 12 trailing months as of March 31, 2014. It is expected to generate significant free cash flow and the transaction will be accretive on a cash earnings per share basis immediately.
GTECH to create first regulated interactive bingo network in US
US GTECH’s subsidiary GTech Sweden Interactive AB has entered into an agreement with the Societé des Lotteries du Québec (Loto-Québec) and the British Columbia Lottery Corporation (BCLC) to provide interactive bingo software, games, and related services to these Canadian lotteries through June 2018. The contract repre- sents North America’s first gov- ernment-regulated interactive bingo network.
Under the four-year agreement, which includes two, two-year
options for extensions, GTech will host from its Montreal, Canada Data Center, while asso- ciated live chat and call center services are based at its National Operations Center in Toronto, Canada.
On May 14, 2014, BCLC updated and launched new interactive bingo games on its
PlayNow.com site. Through a separate agree- ment between BCLC and Manitoba Liquor & Lotteries,
PlayNow.com and its content are also available to Manitoba resi- dents. Loto- Québec’s
Espacejeux.com site, available in
both French and English, has been providing interactive bingo games to Quebec residents since June 12.
Jaymin Patel, President and CEO, GTECH Americas, said:“GTech is proud to launch another industry first with Loto-Québec and BCLC in the government-sponsored interactive space in North America. The Canadian Bingo Network will ensure that players have a legal, safe and fun experi- ence, and that proceeds from interactive bingo in these Canadian provinces will remain in their communities.”
CHTECH’s games provided through this agreement includes the Canadian debut of PopCap Games’ Plants vs. Zombies Bingo.
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US – PECHANGA CLAIMS WORLD FIRST WITH BATMAN Aristocrat’s newest slot game, Batman Classic TV Series Slot Game Powered by Wonder Wheels, has now made its world pre- miere at Pechanga Resort & Casino.
Iconic TV star Adam West was on hand for the cele- bration, greeting a throng of cheering fans and sign- ing autographs.
He said: “I’m so proud to have been a part of a beloved TV series that continues to bring joy to generations of fans. Featuring clips and iconic catch phrases from the original series, and with new voiceovers from me, it’s great to see the fans continue to get excited for Batman with this new slot game.”
Batman Classic TV Series Slot Game Powered by Wonder Wheels puts a triple spin on fun on the casino floor. The $250,000 multi-site progressive game features still and video imagery from the classic TV series with Adam West, and three mechanical wheels that increase player engage- ment.
US – THREE MILLIONAIRES IN THREE DAYS FOR IGT IGT’s legendary MegaJackpots game, Wheel of Fortune, awarded three, $1m-plus jackpots on three consecutive days in casinos across the US. All three winners wished to remain anonymous.
The winning weekend kicked off June 14, 2014 when a lucky player won a $1,557,384 jackpot at Mohegan Sun in Uncasville, Connecticut, on IGT’s huge game, Wheel of Fortune Super Spin Wolf Run. The mega-sized win marks the third million-plus jackpot won on an IGT slot machine at Mohegan Sun in 2014.
US – TROPICANA SELLS RIVER PALMS CASINO Tropicana Entertainment has agreed a sale and lease back transaction with Laughlin Hotel and Nevada Restaurant Services, through its subsidiary companies Columbia Properties Laughlin and CP Laughlin Realty.
The deal has seen CP Laughlin and CPL Realty sell all of the assets associated with the operation of the River Palms Casino in Laughlin, Nevada, for $6.75m in cash.
CP Laughlin leased back River Palms for a period of up to 90 days, subject to an additional 30 day extension, and further subject to earlier termination rights. Tropicana intends to ter- minate the lease and discontinue its operation of River Palms in September 2014.
Tony Rodio, President and Chief Executive Officer for Tropicana, said: “We are pleased to announce this transac- tion today. We have had River Palms on the market for some time and upon the closing of this transaction and the discon- tinuance of our operation of River Palms in September 2014, we will be able to focus our Laughlin efforts exclusively on our flagship property – Tropicana Laughlin.”
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