Italy's Gtech buying IGT for $4.7B

Published on NewsOK Modified: July 16, 2014 at 6:00 am •  Published: July 16, 2014
Advertisement
;

LAS VEGAS (AP) — The Italian lottery operator Gtech is buying slot machine maker International Game Technology for $4.7 billion in cash and stock.

Including $1.7 billion in debt, the companies on Wednesday valued the deal at $6.4 billion.

Gtech said last month that it was in talks with the Las Vegas company and IGT said at the time that it was weighing its options.

IGT stockholders will receive $13.69 in cash plus 0.1819 ordinary shares of the new company for each share they own. This gives IGT shareholders $18.25 per share, which is an approximately 18 percent premium to the company's Tuesday closing price of $15.50. Gtech stockholders will get one share of the new company for each of their existing shares.

IGT and Gtech, which is based in Rome, will form a new holding company called Gtech with corporate headquarters in the U.K. It will have operating headquarters in Las Vegas, Providence and Rome.

Shares of IGT spiked 9 percent to $16.90 before the opening bell in New York.

Gtech will use cash on hand and new financing to fund the cash portion of the deal.

Continue reading this story on the...