IGT and GTECH merge to create world’s largest gaming equipment company
Image source: Casino.org
IGT and GTECH – the Italian lottery giant – are to merge, creating the world’s largest gambling equipment business.
It was announced last Wednesday that IGT will be acquired by GTECH for $6.4 billion. The two businesses will form a new holding company organised in the UK which will take the name of GTECH.
The newly-formed gaming superpower is expected to create revenues of $6 billion, saving $280 million for the businesses annually.
A new gaming superpower
Patti Hart, CEO of IGT commented:
“We are extremely pleased to reach a definitive merger agreement with GTECH as a result of our exploration of strategic alternatives to increase shareholder value. This outstanding combination of two global leaders redefines the future of the gaming industry. Together we are uniquely positioned to provide the industry’s broadest and most innovative portfolio of best-in-class products, solutions and services”.
Marco Sala, CEO of GTECH will become the chief executive officer of the new company and IGT chairman Phil Satre will assume the chairman role alongside him.
Sala said of the merger:
“This transaction is transformational for our business. With limited overlap in products and customers, the combined company will enjoy leading positions across all segments of the gaming landscape. It will increase our global scale and with a full suite of offerings and robust customer relationships across the client spectrum, the new company will be uniquely positioned to take advantage of the ongoing convergence across global gaming market segments”.
The new company will combine IGT’s expertise in slot machine gaming products, game library and manufacturing skills with GTECH’s lottery technology and services.