GGRAsia – GTech groom takes IGT bride’s name as Nevada oks

GTech groom takes IGT bride’s name as Nevada oks

Feb 27, 2015 Newsdesk Industry Talk, Latest News, World

Nevada gaming regulators on Thursday approved GTech SpA’s US$6.4-billion buyout of Nevada-based slot machine manufacturer International Game Technology (IGT), the firms announced. Both the Gaming Control Board and Nevada Gaming Commission approved the deal.

“This is the final gaming authority approval required to complete the transaction announced on July 16, 2014,” lottery equipment and management specialist GTech said in a statement.

The combined companies will be branded as IGT and the holding company will be named International Game Technology Plc, instead of the previously announced Georgia Worldwide Plc, Italy-based GTech said in a separate statement.

“A court order expected in the coming weeks from the U.K. Companies Court specifying the date of the effectiveness of the merger of GTech with and into International Game Technology Plc … is the final condition to closing, other than other customary closing conditions,” GTech said.

The ordinary shares of the U.K. holding company would trade on the New York Stock Exchange under the symbol IGT.

In a filing on Thursday to the Securities and Exchange Commission in the U.S., IGT said the deal is “currently expected to close in early April 2015”.

IGT agreed last summer to be acquired by GTech for US$4.7 billion in cash and stock, and assumption of US$1.7 billion of the slot maker’s debt. Earlier this month, GTech said it completed a US$5 billion financing needed to complete the buyout.

“We are very pleased with the Nevada Gaming Commission’s unanimous consent, and we thank the Commission and Nevada Gaming Control Board for acting expeditiously in approving the transaction,” Marco Sala, chief executive of GTech, said in a prepared statement.

Corporate structure

The new company will have four business units operating in three regions: North America, International and Italy, GTech said.

The company’s North American Gaming headquarters will have global responsibility for the product development, manufacturing, marketing and sales of all of the company’s gaming offerings.

IGT’s slot machine and game development will be integrated into North America Gaming, which will also include interactive and sports wagering products and DoubleDown Casino, the company’s social gaming business.

Current GTech executive Renato Ascoli will become CEO of the company’s North America Gaming/Interactive division.

IGT chairman Phil Satre will serve as the new company’s chairman and IGT chief executive Patti Hart will become vice chairman.

North America Lottery will have global responsibility for the product development, marketing, and delivery of all the company’s lottery offerings, added the firm. Michael Chambrello, who returned to GTech earlier this month, will lead the North America Lottery division.

In Thursday’s statement, GTech said the International business unit will be responsible for the strategic development and management of all business conducted outside of North America and Italy, across the company’s entire product portfolio.

The International division will have “specialised and separate sales and operations groups, each supported by the respective North America product and services organisations,” GTech said.

Walter Bugno, currently president and CEO of GTech International, will head the International business unit of the new company. The respective legacy International IGT groups will be integrated into the International business unit as appropriate,” the firm added.

GTech’s Mr Sala, who will remain as CEO of the merged company, said the transaction “brings together two highly complementary legacy businesses”. “The new name and branding reflect this positioning,” he said.

Mr Sala added: “In the coming months, the new executive team will work together to optimise integration planning to achieve the synergies we have committed to delivering.”