IGT Will Evaluate Strategic Options For PlayDigital And International Gaming.

International Game Technology PLC (IGT), headquartered in London, UK, is a multinational gambling company that manufactures slot machines and other gambling technology. On June 8, IGT announced that its Board of Directors is investigating potential strategic alternatives for IGT's Global Gaming and PlayDigital segments. The aforementioned Board is also considering a number of strategic alternatives, including but not limited to a sale, merger, or spin-off. However, keeping and expanding the Global Gaming and PlayDigital businesses are also viable options.

Facilitators of alternative strategy evaluation:

IGT continues to work with its current team of financial advisers at Deutsche Bank, Macquarie Capital, and Mediobanca and legal consultants at Sidley Austin and White & Case to evaluate potential future courses of action. Although no final choice has been made, the examination of strategic alternatives may or may not lead to a transaction, and there is no time limit on the deliberation process. Until such time as IGT deems additional disclosure appropriate or required, the company has no intention of making any public remarks or updates on these concerns.

IGT's Executive President and CEO Marco Sala made the following statement in this regard: "Over the last three years, IGT has narrowed its strategic focus by reorganising around key product verticals, selling non-core assets, decreasing structural expenses, and considerably strengthening its credit profile. The time is appropriate to evaluate possibilities that may increase value for IGT's shareholders, and we think our stock price does not represent the true value of our market-leading companies and diverse cash flow profile. "IGT is a global leader with deep expertise in lottery, land-based gaming, iGaming, and sports betting," Vince Sadusky, IGT's chief executive, said. While conducting this assessment of potential courses of action, we remain committed to achieving the growth targets and long-term targets we laid out at our Investor Day in November 2021. IGT is prepared to achieve its long-term growth and profit objectives regardless of the result of this process.

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Similar actions were taken by IGT's main competitor, Light & Wonder, which divested itself of the lottery and sports betting businesses in recent years. It has already been listed on the NASDAQ stock exchange, and it is nearing completion of a secondary listing on the Australian Securities Exchange (ASX).

As Light & Wonder CEO Matt Wilson noted in an interview last week, "those moves had helped the company deleverage over the past two years and subsequently invest further in areas such as R&D and user acquisition costs for its social casino business." "As a result," he said, "Light & Wonder is expected to grow its Adjusted EBITDA from US$913 million in 2022 to US$1.4 billion by 2025."