Apollo’s Everi takeover set to complete with IGT merger approved by Nevada Gaming Commission
The takeover of Everi Holdings by Apollo Global Management is expected to be completed this week with a review by the Pennsylvania Gaming Control Board being the final hurdle in this part of Apollo Global’s $6.3bn deal to buy both Everi and the gaming and digital business of International Game Technology.
The two-part transaction by Apollo, owner of the Palazzo, Venetian, and Venetian Expo in Las Vegas, was given the green light by the Nevada Gaming Commission last week. Whilst a permanent brand name for the new entity has not yet been confirmed, regulatory filings refer to Voyager being the umbrella branding. Voyager is owned by Apollo Managed Fund 10, Apollo co-investors, and the De Agostini family, a major shareholder of IGT.
Apollo Global Management also said it will consider an IPO in the future. The deal has already IGT’s lottery business separated and rebranded as Brightstar Lottery.
Jefferies analyst David Katz said: “Coupled with the closing, IGT is expected to announce its intended capital return plans, which would include either a special dividend or share repurchase or a combination. Management is expected to apply the ~$4bn of proceeds post fees, to ~$2bn of debt reduction and some a capital return program.”
Speaking to the Nevada Gaming Commissio, Brin Gibson, legal counsel for the holding company Voyager Voteco, said: “While these three groups intend to provide equity funding for the proposed transitions, control of the Voyager structure will stay with (Apollo partners).
Nicholas Khin, President of global gaming for IGT, will take charge as interim CEO with Hector Fernandez, Former CEO of Aristocrat, stepping in at a later date.
Daniel Cohen, a partner at Apollo, said: “Nevada is critically important to our business and go-forward plans. Our sole focus is driving long-term value creation and making meaningful improvements in the companies we oversee.”
The new entity will have three subdivisions: digital, gaming, and fintech.
Mr. Cohen added: “It will create a scaled gaming-technology-platform company with actionable levers to create upside volatility for growth. We’re combining two franchise assets with complementary portfolios to build world-class leaders across gaming systems, fintech, igaming, and payments. The breadth of the platforms means we have a variety of upside opportunities to grow the businesses meaningfully, develop high-quality content, and compete with the two other large competitors in the space (Light & Wonder and Aristocrat).”
“This product mix creates a recurring revenue profile of over 80% of the business having recurring-like features,” Mr Cohen added. “That was important for us and why we were so excited about the opportunity. It provides us a stable source of revenue and cash flow to invest in the business and pay down debt.”
