Everi Holdings Stockholders Approve Acquisition by Apollo Global Management Affiliates

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Everi Holdings Inc., a prominent name in the gaming technology and financial services sector, has received overwhelming approval from its stockholders for its pending acquisition by affiliates of Apollo Global Management. During a specially convened stockholders’ meeting, approximately 99.88% of the shares voted were in favor of the acquisition, representing a significant 71.48% of Everi’s total outstanding shares as of October 3, 2024.

This decisive approval paves the way for the strategic merger, which is valued at an estimated $6.3 billion. Under the agreement, Everi stockholders will receive $14.25 per share in cash. The transaction is anticipated to close by the end of the third quarter of 2025, contingent upon standard regulatory approvals and the fulfillment of customary closing conditions.

Statements from Leadership

Michael Rumbolz, Chairman of Everi’s Board of Directors, expressed confidence in the merger, stating, “We now shift our focus to the important next steps toward completing the transaction and maximizing value for Everi stockholders.” This sentiment underscores Everi’s commitment to ensuring a seamless transition that aligns with its strategic objectives.

Significance of the Acquisition

The merger represents a significant consolidation within the gaming industry, marking a milestone for both Everi and Apollo Global Management. The transaction also includes Apollo’s acquisition of International Game Technology’s (IGT) Gaming & Digital business. This dual acquisition strategy positions Apollo to create a combined entity under private ownership that leverages the strengths of both companies.

Apollo Global Management, known for its robust portfolio of investments across various industries, aims to harness Everi’s expertise in gaming technology and IGT’s innovative digital gaming solutions. The acquisition reflects Apollo’s vision of fostering a more integrated and diversified gaming and digital ecosystem.

Restructuring Plans for IGT

Following the completion of the transaction, IGT plans to implement a strategic separation of its gaming and digital divisions. This move is intended to streamline the company’s operations, allowing it to focus exclusively on its lottery business. This decision echoes industry trends observed in recent years, such as Scientific Games’ sale of its lottery and sports betting divisions in 2022.

Potential Benefits for Everi and IGT

Everi’s Future Prospects

For Everi, the acquisition by Apollo Global Management opens new avenues for growth and innovation. With increased resources and strategic guidance from Apollo, Everi is poised to enhance its product offerings, which include financial technology solutions and electronic gaming content. The backing of a powerful investment firm could accelerate Everi’s ability to expand its footprint in the competitive gaming landscape.

IGT’s Strategic Realignment

IGT’s decision to focus on its core lottery operations aligns with a clear trend in the gaming industry: specialization. By narrowing its scope, IGT aims to bolster its position as a leader in the global lottery market, leveraging decades of experience and a strong presence in regulated markets worldwide.

Financial Details of the Transaction

The merger deal, valued at approximately $6.3 billion, involves a substantial cash payout to Everi stockholders. Shareholders will receive $14.25 per share, a premium that highlights the attractive nature of the transaction for investors. This all-cash arrangement underscores Apollo’s confidence in the long-term potential of Everi and IGT’s Gaming & Digital businesses.

The transaction will be further detailed in a Form 8-K filing with the US Securities and Exchange Commission (SEC). This document will provide comprehensive financial disclosures, ensuring transparency for all stakeholders involved.

Industry Context and Strategic Implications

The gaming and digital entertainment industry has witnessed significant transformations in recent years, with major players adopting strategies aimed at growth and specialization. The move by Apollo Global Management to acquire Everi and IGT’s Gaming & Digital divisions signifies a deeper investment into the evolving gaming landscape.

Mergers and Acquisitions in the Gaming Sector

The consolidation of industry leaders like Everi and IGT under the private ownership of Apollo echoes past strategic moves. The acquisition mirrors Scientific Games’ 2022 decision to divest parts of its business to focus on its lottery and digital platforms. Such decisions often result in leaner operations and a more defined strategic focus, allowing companies to excel in their core areas of expertise.

Apollo’s Vision for Growth

Apollo has a proven track record of fostering growth in its portfolio companies. By acquiring Everi and IGT’s digital and gaming businesses, Apollo aims to build a synergistic platform that can leverage shared technologies, customer bases, and market strategies. The resulting entity will benefit from combined operational efficiencies and enhanced competitiveness in a rapidly growing market.

Closing Timeline and Future Steps

The completion of the merger is expected by the end of Q3 2025, pending standard closing conditions and regulatory approvals. Once finalized, the transaction will set the stage for significant operational changes and strategic initiatives designed to maximize value and drive future growth.

Stakeholders and industry observers alike will be closely monitoring the developments as Everi and IGT transition into their new operational phases under Apollo’s leadership.

For additional updates, Everi’s management team plans to provide periodic updates and filings to keep investors informed of the progress.

Conclusion: The Approval

The overwhelming approval by Everi Holdings’ stockholders signifies a clear endorsement of the company’s strategic direction. The acquisition by Apollo Global Management, alongside the simultaneous purchase of IGT’s Gaming & Digital business, marks a transformative moment in the gaming and digital entertainment industry. As the transaction moves towards completion, all eyes are on how these changes will impact Everi, IGT, and the broader market landscape.

FAQs About Everi Holdings Stockholders Approve Acquisition by Apollo Global Management Affiliates

1. What recent decision did Everi Holdings stockholders make regarding the company’s acquisition?

Everi Holdings stockholders have approved the company’s pending acquisition by Apollo Global Management’s affiliates, which includes acquiring IGT’s Gaming & Digital business.

2. What is the value of the acquisition deal, and when is it expected to be completed?

The deal is valued at approximately $6.3 billion, with Everi stockholders set to receive $14.25 per share in cash. The transaction is expected to close by the end of Q3 2025, pending customary closing conditions.

3. What comments did Michael Rumbolz, Chairman of Everi’s Board, make about the acquisition?

Michael Rumbolz stated that the focus would now shift toward completing the transaction and maximizing value for Everi stockholders.

4. What strategic realignment will IGT undergo after the acquisition?

Following the acquisition, IGT will separate its gaming and digital divisions to focus on becoming primarily a lottery business, similar to strategic moves in the industry by other companies like Scientific Games.