IGT sells social casino subsidiary for $825 mln

International Game Technology PLC (IGT) on Monday announced the sale of its social casino subsidiary, Double Down Interactive LLC, to an affiliate of DoubleU Games Co., Ltd., a leading global social casino operator headquartered in South Korea.

The transaction was a necessary step in a new multi-year strategic partnership between IGT and DoubleU Games, said the company in a press release.

"Since acquiring DoubleDown in 2012, IGT has grown it into one of the largest and most successful brands in the North American social casino market," said Marco Sala, CEO of IGT. "After several years of strong, organic growth and increasingly attractive valuation levels, the time is right for us to maximize the value of this asset for our shareholders. We will continue participating in the growth of the social casino market through our multi-year, strategic partnership with DoubleU Games."

"This transaction represents a unique and value-accretive partnership combining the operational excellence of DoubleU Games with IGT's world class slot content," said Ga-Ram Kim, CEO of DoubleU Games. "With this partnership, we are excited and confident about DoubleU Games' future as a global leader in social casino."

The cash purchase price is $825 million, which represents 10.5 times DoubleDown's full-year 2016 Adjusted EBITDA.

“Proceeds from the transaction will be used for general corporate purposes, including debt reduction,” said the company.

Upon the closing of the sale, both companies will enter into a game development, distribution and services agreement which will enable DoubleU Games to offer IGT's extensive casino game library on DoubleU Games' combined social casino platforms, in exchange for ongoing royalties to IGT.

More news from this jurisdiction

ElsewhereThursday, Feb 15, 2018

CoinPoint, the premier cryptocurrencies and Blockchain agency based in Australia, Bulgaria, and Philippines, held a successful Bitcoin Cash Party in London last February 8, 2018.

ElsewhereThursday, Feb 15, 2018

At this year’s ICE Totally Gaming, UltraPlay has marked a record-breaking success with new strategic business opportunities, new markets, as well as significant interest towards the latest iGaming innovations and products.

ElsewhereWednesday, Feb 14, 2018

The number of online gamblers will more than double by 2022, driven by engaging new products in the casino space, easing regulations and increased uptake in digital products.

ElsewhereWednesday, Feb 14, 2018

More than 120 volunteers from Melco Resorts worked to give back to the community with three different events with over 550 beneficiaries ahead of the Lunar New Year.

ElsewhereWednesday, Feb 14, 2018

Online payment specialist, Easy Payment Gateway, has struck a partnership deal with SG Digital and also has finalized the integration of its unique payment gateway into the NYX Open Platform System.

ElsewhereTuesday, Feb 13, 2018

Wild Crypto, the international lottery and eGaming platform built upon blockchain technology, has gone live following last year’s successful token sale.

ElsewhereTuesday, Feb 13, 2018

The Gaming Standards Association (GSA) and Gaming Standards Association Europe (GSA Europe) have created a new Technical Committee dedicated to blockchain use.