Taking over market share
Apollo Global Management is moving ahead with its proposed acquisition of IGT Gaming and Everi Holdings Inc. According to Fitch Ratings, the takeover will have a deep impact on North America’s gaming industry and create the region’s largest supplier of land-based slots and game machines.
will own more than 77,000 North American casino gambling machine installations
Combined, the new entity will have a greater installed base and market share of slot cabinets and other game machines than any of its major competitors, Light & Wonder and Aristocrat Leisure. The firm, which is backed by private equity investment firm Apollo, will own more than 77,000 North American casino gambling machine installations, a higher figure than Light & Wonder’s current 54,397.
The entities’ combined 2024 pro forma revenues are $2.6bn and $1.1bn in Adjusted EBITDA.
Creating a brand new identity
The acquisition, announced in a press release in July 2024, will see IGT spin off its slot business to Everi to focus on its lottery technology business. After closing, the combined company will be privately owned and have a new name and ticker.
While Everi has historically had a smaller foothold in the slots industry, Analysts believe the merger will be a catalyst for meaningful diversification and growth. The agency indicated there was significant potential for cross-selling, most specifically among IGT’s in-market global sales channels and Everi’s FinTech and Class II gaming offerings.
leaves opportunities for the company to export its content overseas
Revenue sources must be sensibly well-balanced, with gaming activities generating 29%, sales of equipment 23%, systems and software 23%, and the remaining with FinTech and digital platforms. The blend also leaves opportunities for the company to export its content overseas through IGT’s international networks.
Competing in innovative markets
Aristocrat and Light & Wonder currently have larger digital and iGaming footprints, but Fitch highlights the FinTech segment offered by Everi, which delivers differentiated value. This has greater potential in longer-term opportunities in cashless products and player interaction solutions in casino settings.
The acquisitions will be finalized in the third quarter of this year and will position the new enterprise as the biggest supplier of land-based casino gaming devices in North America.
