International Game Technology PLC (IGT) has announced that it has agreed to sell 100% of the share capital of its Italian B2C sports betting, gaming machine, and digital gaming businesses for €950m ($1.15bn).
The agreement will see IGT offload all of its interest in Lottomatica Scommesse S.r.l. and Lottomatica Videolot Rete S.p.A. to Gamenet Group S.p.A., a subsidiary of funds managed by an affiliate of Apollo Global Management, Inc.
The sale price has been agreed at €950m, with €725m payable at closing, €100m payable in December 2021, and €125m payable in September 2022.
IGT has announced that the proceeds of the sale will largely be used to reduce debt, with the company reporting net debt of $7.24bn as of 30 September 2020.
The board of directors of IGT has unanimously approved the agreement, which remains subject to customary closing conditions.
“The transaction enables IGT to monetize its leadership positions in the Italian B2C gaming machine, sports betting, and digital spaces at an attractive multiple to comparable Italian transactions, providing us with enhanced financial flexibility,” said IGT CEO Marco Sala.
“Aligning with our recent reorganization, the favourable rebalancing of our business and geographic mix reframes and simplifies our priorities while improving the company's future profit margin, cash flow generation, and debt profile.”