SBC News Voice of the Sports Betting Industry
Italian newspaper La Repubblica reported this weekend that Milan stock listed gambling/lottery technology and provisions supplier GTECH SpA were preparing a bold $ 4 billion (£2.33 billion) acquisition offer to purchase International Game Technology – IGT.
The Italian news source confirmed that senior GTECH management, were currently studying the financing dynamics of the deal in order to purchase the New York Listed slots machine and gambling content supplier.
June 2014 saw IGT management publish a statement, in which the company said it would be willing to listen to potential buyout offers. The newspaper claimed that the purchase could likely become a reality in the coming weeks.
GTECH senior management want to reduce the company’s reliance on the Italian lottery and gambling market. Furthermore GTECH have been pressured into increasing its sector presence and creating new business channels. Their interest in IGT has been strong, as the slots manufacturer has a leading presence in the US and Asian market, supplying major international gaming operators.
La Repubblica breaks down the potential deal structure by GTECH, as a mix of cash and equity, the report further adds it could lead to savings and revenue synergies of US$100 million.
Industry analysts pinpointed that GTECH could face antitrust blocks/hurdles in the acquisition of IGT due to industry consolidation that has already occurred within the sector. Private equity firms, meanwhile, could face a financing challenge stemming from a likely lengthy regulatory review in various markets.
