Lottery and casino supplier GTECH S.p.A. announced that the U.S. antitrust authorities have granted early termination of the required waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 relating to GTECH’s pending acquisition of leading slot manufacturer International Game Technology.
The federal action clears the first hurdle to finalization of the acquisition, which is expected next year.
On July 16, GTECH and IGT entered into a definitive merger agreement pursuant to which GTECH will acquire IGT in a transaction valued at $6.4 billion, comprised of $4.7 billion in cash and stock, and the assumption of $1.7 billion in net debt.
Under the terms of the transaction, GTECH and IGT will combine under a newly-formed holding company organized in the United Kingdom (NewCo). The transaction, which has been approved by the boards of directors of both companies, is currently expected to be completed in the first or second quarter of 2015. The transaction is subject to the receipt of required regulatory and gaming clearances, approval by GTECH and IGT shareholders, and other customary conditions.
The combined IGT-GTECH entity would have more than $6 billion in annual revenues and more than $2 billion in cash flow based on the last 12 months as of March 31.
GTECH CEO Marco Sala will serve as CEO of the new company. IGT Chairman Phil Satre will serve as the new company’s chairman and IGT CEO Patti Hart will become vice chairman.
The GTECH/IGT deal is one of two major consolidation actions announced within a month. Less than two weeks after the deal was announced, lottery giant Scientific Games Corporation announced it is buying game and system manufacturer Bally Technologies.