International Game Technology has announced that its Board of Directors is evaluating potential strategic alternatives for the company’s Global Gaming and PlayDigital segments in order to “unlock the full value of IGT’s portfolio.”
The company’s Board is considering a broad range of potential alternatives, including but not limited to a sale, merger, or spin-off, as well as retaining and further investing in the Global Gaming and PlayDigital businesses.
“Over the last three years, IGT has sharpened its strategic focus by reorganizing around core product verticals, monetizing non-core assets, reducing structural costs and significantly improving its credit profile,” said Marco Sala, IGT Executive Chair.
Marco Sala, IGT Executive Chair
“We believe the intrinsic value of IGT’s market-leading businesses and diversified cash flow profile is not currently reflected in our stock price and the timing is right to assess opportunities that may enhance value for IGT’s shareholders.”
“IGT is a global leader with deep expertise in the lottery, land-based gaming, iGaming and sports betting,” added Vince Sadusky, IGT CEO.
“We remain focused on the execution of our growth objectives and multi-year goals outlined in our November 2021 Investor Day as we undertake this review and evaluation of strategic alternatives. Regardless of the outcome of this process, IGT is well-positioned to deliver on its long-term growth and profit targets.”
Vince Sadusky, IGT CEO
IGT has retained Deutsche Bank, Macquarie Capital and Mediobanca as financial advisors and Sidley Austin and White & Case are serving as legal counsel to assist IGT in exploring strategic alternatives.
“No decision has been made regarding any alternative, there is no timeline for the review and there can be no assurance that the exploration of strategic alternatives will result in any transaction,” noted the firm in a statement.
IGT further stated that it does not intend to comment on or provide updates regarding these matters “unless and until it determines that further disclosure is appropriate or required.”
The news follows IGT’s revenue report last month of $1 billion in the first quarter of 2023, up by just 0.8% year-on-year. The positive results were driven by solid performances across the Global Lottery, Global Gaming and PlayDigital segments. In fact, the two segments IGT is considering to sell, Global Gaming and Play Digital, saw revenue hikes of 17.2% and 17.0% respectively.
