GGRAsia – Hector Fernandez to lead combined IGT/Everi entity

Hector Fernandez to lead combined IGT/Everi entity

Dec 06, 2024 Newsdesk Latest News, Top of the deck, World

Hector Fernandez (pictured), who resigned from his post as chief executive of Aristocrat Gaming, will become CEO of the combined enterprise formed by casino technology supplier Everi Holdings Inc and the gaming and digital content business of International Game Technology Plc (IGT).

The appointment was announced on Thursday by private equity firm Apollo Global Management Inc.

Slot machine maker and digital content provider Aristocrat Leisure Ltd announced on Thursday that Mr Fernandez had resigned as CEO of the group’s land-based gaming segment. Mr Fernandez is bound by a 12-month “non-compete” contractual obligation, according to Aristocrat Leisure.

In July, IGT and Everi announced definitive agreements under which IGT’s gaming and digital business and Everi would be simultaneously acquired by a newly formed holding company owned by funds linked to Apollo.

Mr Fernandez will join the combined enterprise “by the fourth quarter of 2025 after expiration of a customary non-compete period,” stated Thursday’s release by Apollo.

After the transaction is completed, Nick Khin, currently president for global gaming at IGT, will lead the combined enterprise as interim CEO until Mr Fernandez assumes the CEO role, it added.

The announcement cited Daniel Cohen, partner at Apollo, as saying: “As we look to position IGT gaming and Everi as a premier, diversified customer-centric platform at the forefront of innovation in the gaming and fintech industries, Hector brings an impressive track record of successfully scaling operations and strengthening customer relationships while being a champion for strong values.”

Mr Fernandez said in prepared remarks that he was “excited” to be part of the “journey with IGT Gaming and Everi”.

“I look forward to partnering with the very talented teams at both companies, as well as the Apollo team leading the transaction,” he stated.

Under the merger agreement, Everi stockholders will receive US$14.25 per share in cash for every share of common stock in the existing Everi entity they own as of the date immediately prior to the merger.

IGT will receive US$4.05 billion of gross cash proceeds and will become a lottery-focused company.

The deal is an all-cash transaction that values the acquired businesses at approximately US$6.3 billion, according to previous statements.

In mid-November, Everi shareholders formally approved the pending transaction at a special meeting.

The proposed transaction is expected to close by the end of the third quarter of 2025, “assuming the timely satisfaction of closing conditions,” said Apollo in its latest release.

Following closing, the combined enterprise will be organised into three business units: gaming, digital, and fintech, stated Apollo’s release.

Upon Mr Fernandez joining the combined enterprise, Mr Khin will step into the “newly formed role” of CEO for gaming, “and will oversee the land-based gaming businesses of the combined enterprise”.

Gil Rotem, current president of IGT PlayDigital, will serve as CEO for the digital business, and Darren Simmons, current executive vice president and fintech business leader at Everi, will serve as CEO for the fintech segment.