It’s been confirmed; two of the world’s largest gambling technology suppliers will become one. The Nevada Gaming Commission yesterday approved the merger between Italian lottery firm Gtech SpA and Las Vegas-based slot machine maker International Game Technology (IGT).
It was first announced back in July of 2014 that the two companies had reached a definitive merger agreement in which GTech would absorb IGT for a total purchase price of $6.4 billion. If approved, the lottery firm and slot machine maker stated that they would combine to become “the world’s leading end-to-end gaming company, uniquely positioned to capitalize on opportunities in global gaming market segments.”
Their desires were granted yesterday when Nevada regulators unanimously approved the merger of GTech and IGT. The $6.4 billion price is made up of $4.7 billion in cash and stocks, plus the assumption of $1.7 million of IGT’s debt. The merger will serve to expanding industries and increase global accessibility for the lucrative GTech brand, while giving the productive (but heavily indebted) slot machine maker a new lease on life.
At present, GTech is headquartered in Italy, while IGT’s home office is located in Las Vegas, NV. That will change soon, though. As per the agreement, the new singular company will be moving its corporate headquarters to the United Kingdom. Operating headquarters will be located in Rome, Italy, Las Vegas, NV and Providence, RI. Additionally, GTech will be dissolved from the Italian Stock Exchange, to be listed on the New York Stock Exchange as “IGT”.
With the official approval from the NGC came an announcement from GTech that it will officially be taking on the IGT name. The holding company, Georgia Worldwide PLC, is being rebranded as well, to be henceforth known as International Game Technology PLC.
“The combination of GTECH and IGT brings together two highly complementary legacy businesses to form the true blue chip company in global gaming,” said Marco Sala, Chief Executive Officer for GTech SpA, in a press release on Thursday. “The new name and branding reflect this positioning.
“In addition, our two companies have similar core values; in fact, our respective names are derived from the same origin. The comprehensive footprint of our new group fully validates the global claim inscribed in the IGT name,” explained Sala.
“Our new logo, marrying the IGT name and the iconic GTECH globe, draws upon the substantial brand equity of our two companies. It symbolizes our unique capacity to transform the industry with cutting-edge technology and innovative content; to deliver exciting game experiences through every channel, including gaming, lottery, interactive, mobile, and social; and to be the partner of choice in the global gaming industry.”
After naming the CEO and VP positions for all of their regional offices—including himself at the CEO of International Game Technology PLC—Sala went on to describe them as “a team of proven leaders” who will assist in the absorption the slot machine maker.
“In the coming months, the new executive team will work together to optimize integration planning to achieve the synergies we have committed to delivering,” continued Sala. “By listening and learning from both companies, they will build on our combined strengths and craft the new organization’s future as a winning combination.”