GTECH Online Gambling Bids To Acquire IGT

Published Wednesday, February 11, 2015 -
GTECH Online Gambling Bids To Acquire IGT

The big news regarding online gambling has been takeovers lately with some companies putting up large sums to acquire compatible firms to facilitate growth. Watching the stock market prices of online gambling operators can be full time entertainment and a source of revenue for the brokers who specialize in internet betting properties.

The recent confirmation that 888 has been approached by the U.K. giant gambling services operator William Hill in a bid to secure a portion of the company has been good for the 888 bottom line with a surge in the asking price of its shares on the market. Shares of the 888 stock rose as much as 20 percent with speculation that William Hill can pull together the deal. The deal is far from complete say analysts.

Now in a similar engagement the online gambling software and services provider GTECH is closing in on a deal to acquire International Game Technology  confirming it had successfully priced of a series of senior secured notes with a total  value of around $5 billion (€4.4 billion). IGT is a gaming developer and maker that would add to GTECH’s strength considerably. It has been revealed that after the acquisition is complete GTECH will merge with Georgia Worldwide, and the shares of the enterprise will be made available on the New York Stock Exchange.

When the deal transpires, Georgia Worldwide will become the issuer of the notes and will use proceeds from the offering to pay the cash component of the acquisition and all costs relating to the arrangement.  GTECH’s Executive vice-president and Chief financial officer, Alberto Fornaro, commented on the engagement,  “The debt of the new combined entity will have an average tenor of more than six years and no significant maturity before 2018,” Fornaro  continued, “It is the inaugural issuance in the US and the first time we have launched a global deal, very large in size and we were over-subscribed.” “Overall, this is  another important step toward the close of the IGT transaction.”


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