Apollo’s $6.3 billion acquisition of IGT and Everi nears completion, reshaping the gaming supplier landscape. Nevada Gaming Control Board grants initial approval for the merger, paving the way for a new industry powerhouse.
Key Takeaways:
- Apollo’s $6.3 billion merger of IGT and Everi could close by end of June
- New entity aims to become a one-stop shop for casino operators’ technology needs
- Leadership changes include former Aristocrat CEO Hector Fernandez taking the helm
Apollo’s Strategic Move in Gaming Supplier Sector
The gaming supplier industry is on the brink of a major shake-up as Apollo Global Management’s $6.3 billion acquisition of International Game Technology (IGT) and Everi Holdings inches closer to completion. The Nevada Gaming Control Board (NGCB) recently granted initial approval for the merger, marking a significant milestone in the process.
A New Gaming Giant Emerges
The merger will combine IGT’s gaming business with Everi’s gaming and financial technology operations, creating a formidable entity in the casino supplier space. Apollo partner Daniel Cohen outlined the vision for the new company, stating, ‘Our goal long term is to become the operator’s supplier.’
This strategic move positions the new IGT to compete more effectively with industry leaders Aristocrat and Light & Wonder. The combined slot machine base of nearly 70,000 units is expected to surpass both competitors, according to Fitch Ratings.
Leadership Transition and Market Impact
Nick Khin, currently IGT’s president, received approval as interim CEO of the new entity. However, former Aristocrat Gaming CEO Hector Fernandez is set to take the helm later this year, bringing valuable industry experience to the role.
The merger is anticipated to unlock new opportunities for cross-selling and innovation in casino technology products. Apollo’s Daniel Cohen emphasized their focus on long-term value creation, citing the firm’s successful track record in the gaming sector.
Regulatory Hurdles and Compliance Concerns
While the NGCB’s approval is a crucial step, the merger still faces regulatory reviews in other jurisdictions. Kate Lowenhar-Fisher, Everi’s Chief Legal Officer, stated that approvals from eight more jurisdictions are needed to close the transaction by July 1.
The hearing also highlighted ongoing concerns about anti-money laundering (AML) compliance in the casino industry. NGCB member George Assad pressed the merging companies on their compliance efforts, reflecting the heightened regulatory scrutiny in the sector.
Industry Implications and Future Outlook
The Apollo-led merger represents a significant shift in the gaming supplier landscape. As the new IGT aims to close the gap with its largest peers, casino operators and players alike can expect to see new innovations and potentially more integrated technology solutions in the coming years.
With the final Nevada Gaming Commission ruling expected on June 26, the industry eagerly awaits the birth of this new gaming technology powerhouse.
