Merged Everi and IGT Create a Giant in the Gambling Industry, Outranking Aristocrat and Light & Wonder
Posted on: June 10, 2025, 11:45h.Last updated: June 10, 2025, 12:01h.
@etfgodfather | Financial | Gaming Business | Mergers and Acquisitions
Apollyon's $6.3 Billion Gamble: Everi and IGT Go Head-to-Head with Light & Wonder
Get ready for the ultimate slot-off! In a matter of weeks, Apollo Global Management (NYSE: APO) will take the top spot as the biggest player in the gambling game—and they're bringing Everi (NYSE: EVRI) and International Game Technology's (NYSE: IGT) global gaming and PlayDigital units along for the ride.
Fitch Ratings confirmed that the combined force of Everi and IGT boasts an impressive 70K installed units, trouncing Light & Wonder's (NASDAQ: LNW) 54,397. With a North American slots sales market share surpassing both Aristocrat and Light & Wonder, it's easy to see why Apollo didn't hesitate to shell out a whopping $6.3 billion for this deal.
Everi's managerial team believes mid-single-digit revenue growth is achievable through 2026, all thanks to smart business planning. But that's just the beginning. Distribution of Everi's content into IGT's existing networks, leveraging IGT's FinTech solutions in international markets, and expanding IGT game content into the Class II category could pave the way for even more revenue.
Although a $6.3 billion market cap for the merged Everi/IGT entity would land below both Aristocrat's and Light & Wonder's market values, revenue growth and cost savings are crucial for Apollo to make this investment pay off.
Debt and Discounts: Apollo's Financing Strategy
You know what they say: Go big or go home. And Apollo is doing exactly that by financing their Everi and IGT acquisitions with a hearty $4.3 billion in junk-rated debt—the perfect recipe for some high-interest rates. But hey, when you're the tallest kid on the playground, you can afford a bit of interest, right?
Efficiency and Economies: The Key to Cost Savings
Apollo is betting on multibillion-dollar savings through operational efficiencies, an inevitable result of the combined entity's increased scale. By streamlining manufacturing, distribution, and support services, consolidating real estate, and taking advantage of economies of scale, the new company is poised to reap substantial cost savings.
Diversification: Expanding the Slot Machine Franchise
The merged Everi/IGT company is expected to boast a diverse revenue stream, harnessing the power of a combination of gaming operations and sales, systems and software, Fintech, and iGaming. Cross-selling opportunities will allow the new entity to offer expanded product offerings in slot machines, digital gaming, and new technologies, ultimately delivering a multi-layered revenue stream.
Sources:
- Fitch Ratings - Apollo Global Management's Acquisition of Everi and IGT Units
- Merger Gallery - Everi/IGT
- BusinessWire - Apollo Global Management Completes Transactions to Form Combined Business with Everi Holdings, Inc.
- Yahoo Finance - Apollo Global Management Inc. (APO)
- Yahoo Finance - Everi Holdings Inc. (EVRI)
- Yahoo Finance - International Game Technology PLC (IGT)
- Yahoo Finance - Light & Wonder Inc. (LNW)
- The merger between Everi and IGT, financed by Apollo Global Management, is expected to create a financial powerhouse in the gaming business, with a combined force that boasts over 70,000 installed units, surpassing competitors like Light & Wonder.
- In order to fund the acquisitions of Everi and IGT, Apollo Global Management will leverage approximately $4.3 billion in junk-rated debt, demonstrating their confidence in the profitable potential of the combined company.
- The merged Everi/IGT entity aims to achieve mid-single-digit revenue growth through 2026, by diversifying its revenue stream, expanding product offerings, and reaping cost savings through operational efficiencies and economies of scale.
