Big Gaming Names GTECH And IGA Set To Merge
In what is perhaps one of the largest financial mergers to ever occur in the world of land and online casino gaming history, two giants of the industry are set to unite as one under a common name after a deal was struck for a record breaking financial figure.
Italian gaming company GTECH has acquired the United States founded gaming entity IGT for a record US$6.4 billion dollars, and the two are expected to come together as one under the IGT name from April 2015 onwards.
The Deal
This mega deal has been some time in the realisation, with the initial merger agreement struck back on July 16, 2014.
Both parties have been waiting for official regulatory approval, which has just come through courtesy of the Nevada Gaming Regulatory, who has issued an official OK to both parties for the merger deal to officially progress.
The final birthing took several hours, with the Nevada Gaming Regulatory meeting for discussions over what is a significant deal for the gaming industry.
With final approval being received, both parties are now waiting for the issue of a court order which will set out the details of the deal and a date from which the merger can commence, with said court order most likely going to arrive in the next few weeks.
The Date And The Details
With the Nevada Gaming Regulatory giving the deal it’s stamp of approval, the month of April now looks likely as the time that the new casino gaming entity will come in to being.
The most obvious change to consumers and customers will be the re-branding of GTECH, which will adopt the IGT name as part of the new deal with a phasing out period of 12 months planned for the GTECH name.
The reason for the larger partner adopting the junior partners name is quite simple. The IGT brand is much more recognised on the international stage, as compared to GTECH which primarily finds its fame in its native Italian market.
Business wise, the new company will be publicly traded on the stock market under the IGT code, and the headquarters of the new entity will be located in the United Kingdom, while existing IGT satellite offices will still be maintained as well.
Additionally, the internal workings of both companies are expected to largely remain the same in the early years of the new arrangement, with GTECH Chief Executive Officer Marco Sala remaining at the helm for the transition phase and then taking on the head role of the new merged entity.
Looking Forward
GTECH obviously believes the acquisition of seasoned gaming veteran IGT is a wise one.
Despite competitor Bally Technologies supposedly taking over IGT’s position as top gaming dog in their part of the market in recent times, IGT still holds a lot of sway, and in particular carries a lot of historic credibility which cannot be gained overnight.
GTECH has stated that they are aware of each company’s strengths and weaknesses, and believes that going forward a new combined whole can be greater than the sum of its parts, and there is a belief by all involved that the new IGT brand will become a competitive commercial heavyweight in the world of land based and online casino gaming.
