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Leading a massive $4.325 billion bond and loan package, Deutsche Bank AG is assisting Apollo Global Management Inc. in its risky takeover of two significant providers of gaming equipment. One of the biggest decisions of the year in the gaming industry, where high-profile acquisitions are uncommon, is this financing arrangement.
Apollo’s strategic initiative involves a $6.3 billion acquisition of Everi Holdings Inc. and the gaming and digital segments of International Game Technology Plc-IGT. Originally, Everi and IGT had planned to merge independently. However, Apollo’s aggressive acquisition strategy has disrupted the industry, surprising many stakeholders.
Under this transformative deal, Apollo’s newly established subsidiary, Apollo Funds, will acquire both Everi Holdings and IGT’s gaming and digital operations. This acquisition will privatize these previously public entities. Shareholders of Everi will receive $14.25 per share in cash, while IGT will secure approximately $4.05 billion in gross cash from the sale of its gaming operations.
The financing package led by Deutsche Bank and Macquarie Capital follows their previous involvement in a $3.7 billion offer for an earlier merger deal between IGT and Everi. The current financing structure includes high-yield bonds and leveraged loans, although final details are still being refined. The substantial $4.325 billion financing underscores the massive capital required for such a significant acquisition.
This deal marks a pivotal shift in the gaming industry, emphasizing Apollo’s role in reshaping the sector’s landscape with this high-profile acquisition.