IGT Moving Some Jobs from Vegas to Reno

By: AP/Staff Email
By: AP/Staff Email

UPDATE 8/6/2014: IGT confirms it will likely move some Las Vegas manufacturing-related jobs to Reno as part of a consolidation process, but the company is not ready to release specific information other than it is likely to happen by spring of 2015.

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LAS VEGAS (AP) - The Italian lottery operator Gtech is buying slot machine maker International Game Technology for $4.7 billion in cash and stock.

Including $1.7 billion in debt, the companies on Wednesday valued the deal at $6.4 billion.

Gtech said last month that it was talking with the Las Vegas company and IGT said at the time that it was weighing its options.

IGT stockholders will receive $13.69 in cash plus 0.1819 ordinary shares of the new company for each share they own. Gtech stockholders will get one share of the new company for each of their existing shares.

IGT and Gtech, which is based in Rome, will form a new holding company with corporate headquarters in the U.K.

The deal is expected to close in 2015's first or second quarter.

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RENO, NV - Bloomberg is reporting that Gtech SpA (GTK) agreed to buy International Game Technology (IGT) uniting the world’s largest provider of lottery systems with the biggest slot machine maker.

The deal makes Italy-based Gtech a much larger player in the 317 billion euro ($430 billion) global gambling business at a time when the industry is grappling with slower growth, competition from Web gaming and consolidation.

Gtech itself is the product of a merger with Lottomatica, operator of Italy’s state lottery, in 2006.

Bloomberg also credits IGT with pioneering a number of innovations in the slot machine industry, including video poker and devices that paid in paper vouchers rather than coins. It’s Wheel of Fortune game was one of the most successful of all time.

IGT’s revenue fell 27 percent between 2007 and 2009, as the global recession clipped casino and consumer spending on slot machines. IGT Chief Executive Officer Patti Hart agreed to pay as much as $500 million in 2012 to purchase Double Down Interactive LLC, a maker of slot machine-like games for Facebook.com.

Investors Business Daily is reporting that Casino gaming equipment maker International Game Technology (NYSE:IGT) said Wednesday has accepted a $6.4 billion offer from Italian lottery operator Gtech.
As part of the deal, Gtech will pay $4.7 billion and also will assume $1.7 billion in IGT stock.

IGT shareholders will get $18.25 per share, with $13.69 cash plus 0.1819 share in a newly formed holding company based in the United Kingdom.

Investors Business Daily says IGT shares closed unchanged at 15.50 on the stock market Tuesday, but have risen 24% since June 6 on takeover talk. (Bloomberg/Staff report)


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