GTECH Acquires IGT for Online Gambling Growth

Published Thursday, July 17, 2014 - Online-Casinos.com
GTECH Acquires IGT for Online Gambling Growth

Just when everyone thought the biggest deal in online gambling history had been completed with the Amaya purchase of the Rational Group for $4.9 billion, GTECH acquires International Game Technology Inc. for an estimated $6.4 billion.

The deal as presented will merge the world’s largest lottery-systems provider, GTECH with IGT, the world’s largest slot-machine maker that has gone into commercial and social gaming. GTECH employs 8,500 people worldwide and will use a transition team to sort out the new situation.

The CEO of GTECH, Marco Sala, commented,  “We will be joining two iconic gaming companies that are leaders in their categories and have literally driven the growth and innovation of the government-sponsored and commercial segments since their beginnings,” Sala, continued, “… Once this transaction is concluded, we will have created the world’s leading end-to-end gaming company.”

The acquisition makes GTECH a significant player in the $430-billion global gambling business.  “GTECH has been trying to increase its share of the U.S. slot machine business, and this does that in a significant way,” Todd Eilers, director of research at Eilers Research LLC in Anaheim Hills, Calif., told Bloomberg News.

A new holding company headquartered somewhere in the U.K. will be established said GTECH with the new company maintaining headquarters in Providence Rhode Island, Rome and Las Vegas.  Sala will serve as CEO of the new company and will take one of 13 seats on the board of directors. The company needs to keep a European presence because of its licenses in Italy, and the United Kingdom was an attractive option because the companies already have an established infrastructure in the country. The combined company would have more than $6 billion in revenue and more than $2 billion in earnings before interest, taxes, depreciation and amortization, GTECH explained.

Once the dust settles on this deal a combined firm will make great strides in expanding its offerings around the world.

 

 

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