Global supplier of gambling technology and solutions, International Game Technology (IGT), announced today that the Global Gaming and PlayDigital divisions are the focus of a strategic evaluation by the board of directors.
Portfolio Value Maximization
In a press release, the board of directors at IGT informed all investors and stakeholders that it is currently considering a broad range of strategic options for the Global Gaming and PlayDigital businesses, including but not limited to a sale, merger or spin-off, or retaining and further investing, with the goal of unlocking the full value of the company’s portfolio.
IGT’s executive chair, Marco Sala, commented on the announcement, pointing out that IGT has been seeking to reorganize the business “around core product verticals [while] monetizing non-core assets, reducing structural costs and significantly improving its credit profile” over the past three years.
We believe the intrinsic value of IGT’s market-leading businesses and diversified cash flow profile is not currently reflected in our stock price and the timing is right to assess opportunities that may enhance value for IGT’s shareholders.
Marco Sala, exec chair, IGT
IGT’s chief executive officer, Vince Sadusky, also commented on the information, emphasizing IGT’s position as “a global leader with deep expertise in lottery, land-based gaming, iGaming and sports betting” and underscoring the company’s resolve to continue pursuing its strategic goals.
“We remain focused on the execution of our growth objectives and multi-year goals outlined in our November 2021 Investor Day as we undertake this review and evaluation of strategic alternatives,” Sadusky said, adamant that the outcome of this process will not impact IGT’s position “to deliver on its long-term growth and profit targets.”
No Timeline or Transaction Guarantee
Deutsche Bank, Macquarie Capital and Mediobanca will continue to serve as IGT’s financial advisors while Sidley Austin and White & Case will retain their positions as legal counsel and continue to assist the business in exploring strategic alternatives.
The board of directors outlined that no decision regarding the strategic alternatives at its disposal has been made, adding that the ongoing evaluation has no timeline and that there can be no assurance that the evaluation of the alternatives will result in a transaction.
IGT’s statement concludes by pointing out that the company would not provide any further comments or updates on the matters “unless and until it determines that further disclosure is appropriate or required.”
Last month, IGT’s Global Gaming division saw an expansion of its wide area progressive (WAP) jackpots into a second US jurisdiction, New Jersey, via a Wheels of Fortune link. With a reset value of $500,000, the WAP jackpot became one of the biggest in the Garden State.
Before that, the division delivered its new casino management system (CMS), IGT ADVANTAGE, to Potawatomi Casino Hotel Carter in Wabeno, Wisconsin.