International Game Technology [NYSE: IGT] declared that it’s division Lottomatica Holdings S.r.l entered into a contract to divest Lottomatica Videolot Rete S.p.A and Lottomatica Scommesse. Additionally, The company will sell 100% shares capital of both the units. The members of the IGT group conducted the company’s Italian B2C gaming machine, sports betting, and digital gaming business.
The divisions will be sold for 950 million in cash to Gamenet Group s.p.A. An affiliate of Apollo Global Management manages Gamenet. Gamenet will pay €725M at the closing of the deal. Moreover, Gamenet will pay €100M in 2021, and the rest €125M in 2022. The deal of the business being divested is roughly worth €1.1B
Ceo of IGT stated “ This deal will aid the company to monetize its control in Italian B2C gaming. Furthermore, The recent reorganizations, rebalancing of geographical frames, and business will improve the company’s future profit margins and cash flow generations.”