IGT considers Global Gaming and PlayDigital sales
The group said its board is looking at potential alternatives that could include a sale, merger or spin-off of the two businesses. IGT’s board will also consider both retaining and further investing in the segments.
IGT said the evaluation of alternatives will focus on unlocking the “full value” of its portfolio but did not set a timeline for the review.
The group also said that there is no assurance the exploration of strategic alternatives will result in any transaction.
IGT has retained Deutsche Bank, Macquarie Capital and Mediobanca as financial advisors and Sidley Austin and White & Case as legal counsel to assist with the review.
“Over the last three years, IGT has sharpened its strategic focus by reorganising around core product verticals, monetising non-core assets, reducing structural costs and significantly improving its credit profile,” IGT’s executive chair, Marco Sala, said.
“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.”
IGT chief executive, Vince Sadusky, added: “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.
“Regardless of the outcome of this process, IGT is well-positioned to deliver on its long-term growth and profit targets.”
Segmental success
The news comes after IGT last month reported revenue of $1.06bn in its first quarter results for 2023, ticking up just slightly by 0.8% year-on-year.
The quarter’s success was fuelled by performances in IGT’s Global Lottery, Global Gaming and PlayDigital segments.
While revenue for Global Lottery fell by 8.2% to $624m, revenues for Global Gaming and PlayDigital shot up by 17.2% and 17.0% respectively.