Apollo Global explores acquisition of IGT’s global gaming & digital segments
Apollo Global Management Incorporated, a New York City-headquartered American private equity firm that is responsible for the Venetian and Palazzo properties on the Las Vegas Strip, is reportedly exploring options to acquire the global gaming & digital segments of the International Game Technology (IGT).
As per emerging media reports, market experts are of the view that the projected cost of the acquisition of IGT’s global gaming and digital divisions will likely stand at $4 billion, but it could potentially reach $5 billion.
In the month of June this year, the well-known Italian producer of slot machines and gaming equipment revealed that it intended to explore strategic alternatives for some of its divisions, though it didn’t disclose the specific options at the time. The list of possibilities included sale of the divisions, merger of the business, spin-off, or restructuring of the enterprise.
IGT Executive Chairperson Marco Sala expressed his belief that the actual value of the company’s prominent market enterprises and varied cash flow portfolio wasn’t being accurately represented by its stock price. He also stressed that the moment was opportune to explore possibilities that could enhance value for the company’s shareholders.
At that time, Sala said, “We believe that the true value of IGT's leading market businesses and diversified cash flow portfolio is currently not adequately reflected in our stock price, and the time is ripe to explore opportunities that could amplify value for IGT's shareholders.”
The global gaming division of IGT encompasses various noteworthy components, such as gaming hardware, software, as well as various necessary licenses that the company owns in various regulated jurisdictions.
However, the latest reports about the acquisition of the global gaming & digital segments of the IGT should be taken with a pinch of salt as none of the two sides declined to provide any comment regarding the reports.
IGT's cutting-edge gaming solutions, coupled with the advanced services and creative content, have strengthened the company's position as an industry leader in the development of new slot machines and the establishment of industry standards.
Interestingly, this isn't going to be Apollo Global management’s first venture in field of slot machine manufacturers if it really acquires the IGT’s gaming divisions. Earlier, the company held a 22 per cent stake in PlayAGS, a well-known gaming manufacturer based in Las Vegas. However, Apollo divested that stake late last year.