GTECH set to buy IGT for $4.7 billion

GTECHIGTAfter weeks of speculation GTECH SpA have confirmed that it will buy Las Vegas based slots machine and gambling provisions manufacturer International Game Technology (IGT) for $4.7 billion (£2.74 billion).

Business news sources speculate that GTECH have structured the purchase of IGT using cash and stock equity. The further inclusion of $1.7 billion in net debt, will see the total deal valued at $6.4 billion (£3.9 billion)

GTECH have been advised on the acquisition of IGT by Morgan Stanley’s corporate mergers and financing division, the firm commented that it expects to finance the cash portion of the deal through a combination of cash on hand and new financing. The company has received binding commitments of $10.7 billion from Credit Suisse, Barclays and Citigroup to finance the deal.

IGT and GTECH are expected to merge under a new holding company, which will be based in London. The new company will apply for listing on the New York Stock Exchange.

GTECH Chief Executive Officer Marco Sala, who is expected become the CEO of the new company commented “With limited overlap in products and customers, the combined company will enjoy leading positions across all segments of the gaming landscape”

Reuters news source confirmed that IGT shareholders will receive a total of $18.25 per share in a combination of $13.69 in cash and 0.1819 ordinary share of the new company, representing an 18 percent premium to IGT’s closing price on Tuesday.

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