GTECH of Italy agrees to purchase Las Vegas-based IGT for $4.7 billion in stock and cash.
GTECH
Founded in 1990, GTECH S.p.A. is an Italian gaming business that is best known for running the Italian National lottery. GTECH’s portfolio also includes numerous other gaming and gambling services and related technologies. That portfolio has not, however, included much development of physical and software-based slot machines. Many investors viewed growth of the portfolio in that direction as a major next step in the company’s evolution and eventual e
xpansion into North America.
IGT
International Game Technology is a Nevada-based company that can trace its roots to the earliest days of Las Vegas and went public in 1981. IGT generates approximately $2 billion a year and is one of the largest manufacturers of slot machines in the world. It provides slot machines in casinos in Las Vegas, Atlantic City and cities across the globe. Prior to 2005, IGT did not have a deep presence online, but that changed when IGT acquired UK-based Wageworks.
What the Acquisition Means
IGT shares rose more than 11 percent when announcement of the agreement was made. IGT shareholders will receive cash and stock in GTECH. For the companies and consumers who deal with IGT currently, not much is likely to change. IGT will now have some inroads in Europe that the company did not have previously. The most important aspect of this acquisition, the biggest by an Italian company in 2014, is that GTECH immediately has a substantial presence in Nevada and online. Much as IGT did with Wagerworks in 2005, GTECH will likely use IGT resources to expand its offerings.
IGT/Wagerworks Slot Machines
For slot fans and industry professionals, perhaps the biggest question is what this acquisition will mean for slot machines by IGT and Wagerworks. Again, North America is not likely to see a change. There will likely be increased effort to broaden IGT exposure in casinos throughout Europe. The IGT slot machine portfolio will likely expand due to the increased and more varied demand. That probably will have some positive effective on the slot machine player in Las Vegas, Atlantic City and online as well.
