Updating the market, New York-listed IGT Group Plc has confirmed that it has concluded its $825 million sale of social games/gambling division Double Down Interactive to Korean games developer DoubleU Games Studio.
The deal was first announced last April, with IGT governance detailing that the final sales figure represented a value of ‘10.5 x on Double Down full-year 2016’s adjusted earnings.’
IGT’s legacy firm acquired Double Down in 2012, for a sum $500 million as the industry slots manufacturer moved to expand its services immediately becoming a leading player in the then burgeoning social casino games market.
As part of its deal IGT will now create a ‘multi-year strategic partnership’ with buyer DoubleU, which will seek to enhance ‘player experiences’ within gambling and social gaming.
“Today, we are also entering into a long-term game development and distribution agreement with DoubleU Games for social casino content,” commented Marco Sala, CEO of IGT on the sale of Double Down.
“This is an important development in supporting our strategy of leveraging our substantial content catalogue across multiple distribution platforms. Through this partnership with DoubleU, we will continue participating in the social casino market, as we will be collecting ongoing royalties on our casino game content.”
Updating investors IGT governance has detailed that the proceeds from the cash sale of Double Down will be used to clear/reduce the firms debt (circa $7.3 billion).