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Apollo Global Management Among Potential Suitors for IGT’s Global Gaming Division

According to sources familiar with the matter, Apollo Global Management Inc. is one of the potential suitors competing to acquire International Game Technology (IGT) Plc's global gaming division. The unit, which includes the manufacturing of slot machines, is estimated to be valued at $4 billion to $5 billion, including debt.

IGT announced in June that it was exploring strategic alternatives for its global gaming and PlayDigital online segments, including a possible sale, merger, or spinoff. At the time, the company also mentioned the possibility of retaining both businesses.

In the first half of 2023, IGT's global gaming division generated $223 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). If the division is sold for around $5 billion, it would represent a multiple of approximately 11 times EBITDA, which is a discount compared to the approximately 13 times multiple at which rival Aristocrat Leisure Ltd. trades.

Apollo Global Management and IGT have a history of business dealings. Earlier this year, IGT sold its Lottomatica subsidiary in Italy to funds managed by Apollo.

Both Apollo and IGT declined to comment on Apollo Global Management's interest in acquiring the global gaming division.

Sources: Bloomberg Businessweek