Merger with GTech best deal for IGT: Patti Hart
The chief executive of International Game Technology (IGT), Patti Hart (pictured), says that merging with GTech SpA “is the best strategic transaction” for the U.S.-based gaming supplier.
“I think it is the best strategic transaction, where you can identify amazing amounts of synergies from across some revenue perspectives, with very little overlap on customers, with little risk from an antitrust perspective,” Ms Hart told a conference call on Wednesday, following the announcement of the deal.
IGT and GTech, an Italian operator of commercial lotteries and provider of gaming technology, announced on Wednesday that the two companies have entered into a definitive merger agreement. GTech will acquire IGT for US$6.4 billion.
“If you’re really going to be focused on the strategic long-term value for shareholders, employees and customers, we just don’t think it gets better than this combination,” Ms Hart said.
She added: “As we looked at the business, one of the things that we found to be most attractive was the global scale that comes from diversity in products and diversity in our geographic mix, which provides a much more balanced portfolio for the company.”
Ms Hart did not disclose details regarding when the discussions with GTech started and whether there were other potential buyers interested on IGT. Reuters reported last month that at least four firms were pursuing a bid for IGT, including GTech and private equity firm Apollo Global Management LLC, co-owner of casino operator Caesars Entertainment Corp.
She added the deal was yet another step on the ongoing consolidation trend sweeping the gaming supplying industry. “As industries mature, people who have historically been in niche phases find an opportunity to look at adjacent markets to grow and that is what is happening,” she said.
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