Gaming technology companies IGT and Everi’s anticipated $6.3 billion merger is ever closer to completion after Nevada's Gaming Control Board gave its first approval to the merger with a unanimous vote last Wednesday.
Key takeaways
- The merger between IGT and Everi is worth $6.3 billion.
- The Nevada Gaming Control Board granted the merger an initial approval.
- The deal is anticipated to be finalized by July 1.
The deal, being overseen by the New York-based asset-management company Apollo Global Management, now received approval in 36 jurisdictions across the U.S. The next step is a review of the proposal by the Nevada Gaming Commission and Pennsylvania Gaming Control Board, both scheduled for June 26.
If those organizations approve the merger, it could be finalized as early as July 1.
“We believe this transaction maintains the integrity and strong strategic rationale of our original agreement with IGT, but now also provides significant and certain value to our stockholders as we move forward with the Apollo Funds as our partner,” said Randy Taylor, Everi's president and CEO, in a press release last year.
IGT has a change of plans
IGT proposed the original merger in February as part of a strategy to separate its digital gaming operations from its lottery operations.
Apollo’s proposal to buy both companies led to a change of plans.
The new deal, backed by £20 million ($27 million USD) in financing, will see the two companies merge into a new private company controlled by Apollo Global Management. The new business will keep IGT's name, though it will focus on premier lottery products and be headquartered in Las Vegas.
According to the Nevada Control Board Chairman, Kirk Hendrick, the regulatory review process was made easier because all three companies were well-known in Nevada. Everi is based in the state, while IGT operated in Nevada since 1975, and Apollo owns the Palazzo and The Venetian resorts in Vegas.
IGT extends Vegas Presence with Wheel of Fortune
IGT’s merger with Everi is not the only recent Nevada-related news for the group. In April, the gambling giant released its Wheel of Fortune brand in Downtown Grand Hotel & Casino with its Wheel of Fortune Video Poker launch in the CrystalCurve cabinet.
The Las Vegas launch marked the start of its international debut, with Downtown Grand the first casino to offer guests the Wheel of Fortune-branded game.
"Becoming the first casino in the world to offer IGT's Wheel of Fortune Video Poker was an exciting moment for Downtown Grand and one that generated palpable buzz and significant play on our gaming floor. For decades, our players have enjoyed IGT video poker and Wheel of Fortune slots, so combining the DNA of those two products to create something new is an exciting proposition for our players," said Rick Coltor, slots manager at the Downtown Grand Las Vegas.
