GTECH enters preliminary talks to purchase IGT

Interactive gaming software and services provider GTECH has confirmed that it has entered preliminary talks to purchase gaming products designer and manufacturer International Game Technology (IGT) in a cash and shares deal.

GTECH said on Monday that it has hired advisers to help negotiate the deal.

IGT has opted to seek a buyer after its stock tumbled by almost one third due to weak demand in the gaming market.

The Reuters news agency reported last week that sources had informed it of GTECH’s intentions, with IGT stock jumping 11% on Friday following publication of the report, giving the firm a market value of close to $4 billion (€3 billion).

Earlier last week, iGaming Business also reported that IGT’s share price surged almost 15% following reports that the company had been put up for sale.

IGT had $2.2 billion of debt at the end of March, placing its enterprise value at approximately $6 billion.

It has also been reported that three rival bidders also plan to make formal offers alongside GTECH, but none have gone public with their plans so far.

“This transaction could potentially involve the use of a mix of cash and equity,” GTECH said.

GTECH, the world’s largest operator of lotteries, has a market capitalisation of around $4.6 billion.

In response to last week’s reports, IGT said: “No decisions have been made by the board regarding any particular alternative available to the company.”

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