GTECH in Talks to Acquire International Game TechnologyDaniele Lepido
GTECH SpA, the operator of Italy’s state lottery, said it’s discussing a purchase of International Game Technology, the world’s largest maker of slot machines.
GTECH is holding “preliminary, exploratory discussions regarding a potential acquisition” of IGT using a combination of shares and cash, according to an Italian Exchange statement. GTECH said there’s no guarantee the talks will lead to an agreement.
IGT, based in Las Vegas, rose 11 percent June 13 in New York after Reuters reported potential bidders included GTECH and billionaire Ron Perelman’s MacAndrews & Forbes Holdings Inc. IGT also attracted preliminary bids from Apollo Global Management LLC and Carlyle Group LP, Reuters reported, citing people familiar with the matter.
“IGT regularly considers, and on occasion explores a broad range of strategic alternatives, including but not limited to business combinations, changes to our capital structure and adjustments to our portfolio of businesses, with the goal of maximizing shareholder value,” IGT said in a separate statement today.
GTECH, which is controlled by Italian publisher De Agostini SpA, reported 2013 revenue of about 3.1 billion euros ($4.2 billion), with net income of 175.4 million euros. The Rome-based company employs 8,600 people and operates in 60 countries.
GTECH was down 1.1 percent to 19.44 euros in Milan, giving the company a market value of 3.4 billion euros. IGT’s market value is $3.9 billion.
The Italian company said it hired unidentified advisers to assist in the discussions.