Gaming Firms of Italy and U.S Gaming Merge in a Deal of $6.4 Billion
Italy-based Gtech SpA has decided to buy International Game Technology for an amount of $4.7 billion paid in cash and stock. The deal will unite the biggest source of lottery systems in the world with the largest maker of slot-machines.
Gtech will be paying $18.25 for a share of IGT, or cash $13.69 along with 0.1819 shares in a recently formed holding company. Today in a statement the Italian company said that will be about 18 % more than the last closing price of IGT at $15.50. The value of the total transaction will be approximately $6.4 billion which includes around $1.75 billion in IGT's existing debt.
The transaction will make Gtech a bigger player in the 317 billion-euro ($430 billion) gambling business globally and that too at a period when the industry is struggling with slow growth as well as great competition from Web gaming.
Gtech said in the statement, the base of the new holding company will be in the U. K. and will have headquarters operating in Rom, Las Vegas, Providence and Rhode Island.
The present CEO of Gtech, Marco Sala also will be chief executive officer of the newly formed company.
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