Apollo Global Management, the operator who is in charge of the Venetian and Palazzo hotels on the Strip, might be reconsidering including slot machines in their offering.
The best alternative:
The private equity firm might possibly be the one to acquire the renowned global gaming and digital divisions currently owned by International Game Technology.
The estimated price of the acquisition is $4 billion, but it can go up to $5 billion, according to the experts.
Back in June, the renowned Italian slot and gaming equipment manufacturer announced that they were looking for potential strategic alternatives for their popular divisions, but the options remained unknown. The company back then considered various options, including sale, merger, spin-off, or retraining.
Marco Sala, the executive chair of IGT, commented on that in June, saying: “Over the last three years, IGT has sharpened its strategic focus by reorganizing around core product verticals, monetizing non-core assets, reducing structural costs and significantly improving its credit profile. We believe the intrinsic value of IGT’s market-leading businesses and diversified cash flow profile is not currently reflected in our stock price, and the timing is right to assess opportunities that may enhance value for IGT’s shareholders.”
The global gaming division includes various important matters, such as gaming hardware, software, and all required licenses. On the other hand, the digital division includes iGaming systems and various digital platforms, as well as sports betting technology and advanced services.
A Review Journal reports neither IGT nor Apollo’s representatives wanted to comment on these claims about the acquisition.
The second round with slot machines:
This is not the first time Apollo has entered the game with the slot machine manufacturers. Earlier, before this acquisition, the company possessed 22% of PlayAGS, the renowned gaming manufacturer from Las Vegas. However, at the end of the last year, the company decided to sell its stakes after almost a decade of ownership.
Barry Jonas, an analyst at Truist Securities, conducted research and published a note about it on September 15. He claimed that the IGT didn’t share any updates about the incoming strategic review. He said that “they are running multiple processes concurrently,” and it seems that the mystery is solved with the announcement of this acquisition.
IGT’s innovative solutions, along with advanced and modern service and creative content, made the company one of the industry leaders when it comes to producing new slot machines and establishing new standards in the industry.