A new holding company established by Apollo Global Management has agreed to acquire Everi and IGT’s Gaming & Digital business in an all-cash deal valued at $6.3 billion.

IGT and Everi are being acquired by Apollo Funds following a strategic review by IGT earlier this year. The review led IGT to enter into a definitive agreement to combine its Global Gaming and PlayDigital businesses with Everi. As part of the deal, IGT planned to separate its Global Gaming and PlayDigital segments into a taxable spin-off to shareholders. Now, Apollo Funds has acquired IGT Gaming and Everi with plans to transition the two entities into privately owned companies once the transaction is closed.

“With the Apollo Funds, we have found a partner that recognizes the strength of IGT Gaming, the value of our talent, and our position in the industry,” said IGT CEO Vince Sadusky. “This transaction will allow IGT Gaming to continue to invest in and enhance its growing core segments while providing customers with a more comprehensive portfolio of offerings.”

As part of the deal, Everi stockholders are receiving $14.25 per share with IGT set to receive $4 billion of gross cash proceeds for its former Gaming segment. IGT plans to use most of the fresh injection of capital to repay debt and return value to shareholders.

De Agostini S.p.A, IGT’s majority shareholder, will continue to invest in the company despite the sale to Apollo Funds.

De Agostini plans to make a minority equity investment in the combined business once the transaction is closed. Apollo Funds and IGT expect the deal to close by Q4 2025 with Everi delisting from the New York Stock Exchange. IGT will also be changing its name and stock ticker symbol as a lottery business upon a completed sale.

The transaction is not expected to face scrutiny from IGT leadership with a special committee from its board of directors approving the deal. The transaction has also been unanimously approved by all members of Everi’s board of directors.

Stagnant results for IGT

IGT is offloading its Gaming and Digital business amid flat revenue results.

The London-based company generated $1.07 billion in revenue in Q1 2024, a 1% increase year-over-year. The results in Q1 were led by IGT’s Global Lottery business, which reported $661 million in revenue. By comparison, lottery revenue reached $624 million in Q1 2023.

IGT’s Gaming and Digital business closed Q1 2024 with $406 million in revenue, down from $436 million for the same period last year. Before IGT’s agreement with Apollo Funds, the company projected total full-year revenue in FY2024 to reach at least $4.4 billion.