Global gaming products and services giant IGT is considering a ‘sale, merger or spin-off’ of its Global Gaming and PlayDigital businesses.
The group announced that the board is currently ‘evaluating potential strategic alternatives’ for the two segments, which also including ‘retaining and further investing’ in them.
Speaking of the reasons behind the move, Marco Sala, IGT’s Executive Chair noted that “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 group highlights that ‘no decision has been made regarding any alternative, there is no timeline for the review and there can be no assurance that the exploration of strategic alternatives will result in any transaction’.
The group’s CEO, Vince Sadusky noted that “Regardless of the outcome of this process, IGT is well-positioned to deliver on its long-term growth and profit targets.”
In the first quarter of this year, the group saw revenue from its Global Gaming and PlayDigital arms each rise 17 percent yearly, to $381 million and $55 million respectively.
The Global Gaming segment is its second-highest performing arm, after Lottery (which brought in $624 million in 1Q23, down 8 percent yearly).
And while PlayDigital is still ramping up, it’s performing well, with the group continuing to invest in the segment. For example, last year it acquired iGaming content provider iSoftBet for $164 million, more than doubling the size of PlayDigital’s content library.
