Gamenet Group Acquires Gaming Machines of IGT in Italy

One of the largest gaming companies operating in Italy, Gamenet Group, has agreed to legally acquire the Italian online, sports betting and gaming division of IGT. The purchase agreement from December 6, 2020 includes the entire collection of B2C gaming machines, currently in possession of International Game Technology PLC in partnership with Lottomatica Holding S.r.l. and its subsidiaries, leading operators in the Italian market.

As reported, this milestone transaction is expected to close in the first half of 2021. In order to become the legal owner and undisputed leader in the region, Gamenet Group must receive authorization of the Italian Customs and Monopolies Agency, as well as the approval of the relevant competition authority.

Committed to Quality and Excellence

By offering slot machines, video lottery, sports betting, horse racing and virtual sports in the Italian gaming market for more than 14 years, Gamenet Group S.p.A. has become a key player in Europe, employing a workforce of some 1,200 people. The company has made aggregated revenues and EBITDA of EUR 1.6 billion, including EUR 370 million for the year ending December 31, 2019.

As a result of this acquisition, a reliable company such as Gamenet will be able to apply IGT’s know-how and shared experiences, which add great value to the industry in general. Also, a high level of expertise is coming from Lottomatica, whose high standards of quality, safety and gaming solutions have shaped the industry in an innovative way over the years.

Guglielmo Angelozzi, chief executive officer of Gamenet Group, commented:

“We have always been committed to providing excellent and safe product experiences to our customers. Through this transformational acquisition, the quality of the assets and of the people coming from Lottomatica will further strengthen Gamenet Group’s extraordinary operations, human capital and portfolio of brands.”

Angelozzi added:

“We remain committed to ing our selection of brands, which is now unparalleled in the Italian market and we will always remain focused on the quality of our products and services and on the growth of our business and of our partners.”

Andrea Moneta, chairman of Gamenet Group and senior advisor at Apollo Management International, LLP, noted that the acquisition will significantly accelerate the group’s expansion plans in the Italian market. On a related note, the Apollo funds will also continue to new growth strategies in the region as the company maintains a disciplined approach to broadening services in many sectors.

“As a global leader in alternative investments, our conviction in this transaction demonstrates our belief in the country, its regulation and its resilience,” concludes Moneta.

Enhanced Financial Flexibility

Selling one hundred percent of the share capital of Lottomatica Videolot Rete S.p.A. and Lottomatica Scommesse S.r.l., of the IGT group will allow the multinational gambling company with headquarters in London to monetize its leadership position, according to Marco Sala, CEO of IGT.

Thanks to the company’s recent reorganization, IGT will secure enhanced financial flexibility and improve future profit margin, as well as cash flow generation, added Sala. The entire transaction is estimated at approximately €1.1 billion, and the Board of Directors has unanimously approved this business deal. After customary closing conditions as well as regulatory approvals, the purchase agreement should be concluded in the first half of 2021.

Source:

“Gamenet Group agrees to acquire the Italian online, sports betting and gaming machines b2c businesses of IGT”, gamenetgroup.it, December 6th, 2020.

“International Game Technology PLC Announces Agreement To Sell Italian B2C Gaming Business For 950 Million In Cash”, gamenetgroup.it, December 7th, 2020.