GTECH eyes up IGT acquisition

igtforsaleItalian lottery and gambling provisions operator Gtech S.p.A. announced this Monday that it is engaged in preliminary, exploratory talks regarding a potential transaction with slot-machine maker International Game Technology (IGT). Gtech said it has engaged financial advisors to assist it in exploring this potential transaction.

Meanwhile, IGT confirmed on Monday that it considers a broad range of strategic alternatives, and has currently engaged in an exploration of alternatives to maximize shareholder value.

In a statement, IGT, a provider of casino gaming entertainment, said, “IGT regularly considers, and on occasion explores, a broad range of strategic alternatives, including but not limited to business combinations, changes to our capital structure and adjustments to our portfolio of businesses, with the goal of maximizing shareholder value. The IGT Board of Directors and senior management are currently engaged in such an exploration…”

IGT said its Board is yet to take any decisions regarding any particular alternative available to the company.International Game Technology added that there can be no assurances that any deal or other strategic change will be entered into as a result of the current exploration of alternatives.

International Game Technology also said that until the Board has approved a definitive course of action, it will not discuss or disclose developments.

On Friday, shares of International Game Technology surged $1.51 or 10.52 percent to close at $15.86, after it was reported that Gtech and billionaire Ron Perelman’s MacAndrews & Forbes Holdings are competing to buy the Las Vegas slot machine maker.

As per reports, private equity firm Apollo Global Management LLC, a co-owner of Caesars Entertainment Corp., was also trying for a bid. Last Monday, media had reported that International Game Technology was considering putting itself up for sale, and has hired Morgan Stanley to explore a possible sale, aiming to combat slow growth.

International Game Technology’s stock reportedly had lost 31 percent of its value due to slow fundamentals in the gaming market. At present, International Game Technology’s market value is $3.92 billion.

In the past year, several deals were made involving slot machine makers. Bally Technologies acquired gaming equipment provider SHFL entertainment for $1.3 billion, and lottery giant Scientific Games bought slot machine maker WMS Industries for $1.5 billion.

 

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