International Game Technology has made no secret of the fact that the company is having some financial issues. For months, we have heard news that IGT had plans to sell and now the company has made a final decision. GTECH will acquire IGT for the impressive sum of $4.7 billion. As part of the deal, IGT and GTECH will form one new company.
Few details are available at the moment, but we anticipate that it will be something similar to Bwin and Party Gaming’s merger several years ago. “This outstanding combination of two global leaders truly defines the future of gaming entertainment,” says Patti Hart, CEO of IGT. “Together we are uniquely positioned to provide the industry’s broadest and most innovative portfolio of best-in-class products, solutions and services”.
This is just one month after it was reported that IGT and GTECH had entered into talks about potential acquisition. It seems that the negotiations have gone quite smoothly, as the two companies have come to an amicable agreement with regards to the future of IGT. It is a great business decision for both companies.
While IGT will find a way out of its financial turmoil, GTECH will be able to expand further into the North American gambling market. Italy-based GTECH is currently seeing a decline in revenue as spending in the country dropped by 6.6% last year. In the United States, gambling spending grew by 6.7%. It is burgeoning market in which IGT has a strong foothold. So, GTECH will certainly benefit from the acquisition.
GTECH Chief Executive Officer Marco Sala will become the CEO of the new company that will be formed with IGT. He looks forward to the potential growth for both companies. "With limited overlap in products and customers, the combined company will enjoy leading positions across all segments of the gaming landscape," Sala says.