Hector Fernandez to Lead Diversified Gaming Solutions Provider as CEO Following Combination of IGT's Gaming and Digital Business with Everi

Rhea-AI Summary

Apollo Global Management announced Hector Fernandez as the future CEO of the combined enterprise formed by IGT's Gaming & Digital Business and Everi Holdings. Fernandez, former CEO of Aristocrat Gaming, will join by Q4 2025 after a non-compete period.

Nick Khin will serve as Interim CEO following the transaction close and later transition to CEO, Gaming. The combined enterprise will be organized into three business units: Gaming (led by Nick Khin), Digital (led by Gil Rotem), and FinTech (led by Darren Simmons).

The acquisitions are expected to complete by Q3 2025, pending gaming and regulatory approvals. Everi stockholders approved the transaction on November 14, 2024, and the HSR waiting period expired on November 20, 2024. The IGT Gaming separation is expected to complete in early 2025.

Positive

• Strategic leadership appointment with proven track record in gaming industry
• Clear organizational structure with three specialized business units
• Transaction progressing with stockholder approval and HSR clearance obtained

Negative

• Extended waiting period until new CEO takes position (Q4 2025)
• Complex integration process involving multiple business units

Insights

Financial Analyst

The appointment of Hector Fernandez as CEO and the organizational restructuring into three distinct business units (Gaming, Digital and FinTech) marks a significant milestone in Apollo's 7 billion acquisition strategy. Fernandez's successful track record at Aristocrat Gaming, particularly in driving market share gains and profitability, suggests strong potential for value creation in the combined entity.

The interim leadership structure and clear succession planning, with Nick Khin serving as temporary CEO until Q4 2025, provides operational continuity during the critical integration phase. The transaction's progress, including Everi stockholder approval and HSR clearance, indicates steady advancement toward the Q3 2025 completion target. The tripartite business structure under specialized leadership should enable focused growth strategies while maintaining operational efficiency across segments.

Market Research Analyst

The strategic combination of IGT Gaming and Everi under Apollo's management creates a formidable player in the gaming and fintech space. The merger consolidates complementary strengths - IGT's gaming technology expertise with Everi's fintech capabilities - potentially creating significant cross-selling opportunities and operational synergies.

The appointment of segment-specific CEOs (Gaming, Digital and FinTech) suggests a focused approach to market penetration and product development. This structure could accelerate innovation and market responsiveness in each vertical while maintaining specialized expertise. The retention of key executives from both organizations should facilitate smoother integration and relationship continuity with existing customers.

Proven Operator Positioned to Accelerate Growth and Product Innovation of Combined Enterprise Will Join by the Fourth Quarter of 2025

Nick Khin to Serve as Interim CEO of Combined Enterprise Following Closing

Combined Enterprise to be Organized Into 3 Business Units:
Gaming (led by Nick Khin), Digital (led by Gil Rotem) and FinTech (led by Darren Simmons)

NEW YORK, Dec. 05, 2024 (GLOBE NEWSWIRE) -- The holding company formed to acquire International Game Technology PLC’s (NYSE: IGT) ("IGT") Gaming & Digital Business (“IGT Gaming”) and Everi Holdings Inc. (NYSE: EVRI) ("Everi") in connection with the previously announced acquisitions by funds managed by affiliates of Apollo Global Management, Inc. (the "Apollo Funds") today announced that Hector Fernandez will lead the combined enterprise as CEO.

Mr. Fernandez brings a clear track record of success across technology and gaming as well as deep strategic and financial expertise. His diverse experience both inside and outside of the gaming industry is expected to position him well to integrate and lead two highly complementary gaming platforms following the transaction close with a focus on growth, product innovation and content generation. Mr. Fernandez most recently served as CEO of Aristocrat Gaming, Aristocrat Leisure Limited’s global land-based gaming content and technology business. During his tenure, he devised and led a number of strategic initiatives that enabled gains in market share across multiple verticals while delivering strong revenue growth and increased profitability.

Daniel Cohen, Partner at Apollo, stated, “We’re thrilled to name Hector Fernandez as the future CEO of the combined enterprise. As we look to position IGT Gaming and Everi as a premier, diversified customer-centric platform at the forefront of innovation in the gaming and fintech industries, Hector brings an impressive track record of successfully scaling operations and strengthening customer relationships while being a champion for strong values. Hector shares our vision to lead this talented global workforce and will foster a people-first culture across the combined enterprise.”

Mr. Fernandez said, “I couldn’t be more excited to be part of this journey with IGT Gaming and Everi. I look forward to partnering with the very talented teams at both companies, as well as the Apollo team leading the transaction.”

Mr. Fernandez will join the combined enterprise by the fourth quarter of 2025 after expiration of a customary non-compete period. Following the transaction close, Nick Khin, President, Global Gaming at IGT, will lead the combined enterprise as Interim CEO until Mr. Fernandez assumes the CEO role.

Following closing, the combined enterprise will be organized into three business units: Gaming, Digital, and FinTech. Upon Mr. Fernandez joining the combined enterprise, Mr. Khin will step into the newly formed role of CEO, Gaming, and will oversee the land-based gaming businesses of the combined enterprise. Gil Rotem, current President of IGT PlayDigital, will serve as CEO, Digital, and Darren Simmons, current Executive Vice President and FinTech Business Leader at Everi, will serve as CEO, FinTech. These appointments expand on the previously announced leadership for the combined enterprise.

Mr. Cohen added, “We’re excited for Nick to take on the additional responsibility of Interim CEO upon closing of the acquisitions and are confident he will succeed in his role of leading the land-based gaming businesses of the combined enterprise once Hector officially joins. Under Nick’s leadership, IGT has meaningfully improved its industry position and continues to release top performing games across channels. We believe his deep understanding of customers and players, as well as his leadership and passion, will help set the foundation for future success. We are also pleased to have leaders of Gil’s and Darren’s caliber from both companies ready to take on key leadership roles in the combined enterprise.”

Mr. Khin commented, “I believe in the tremendous potential of IGT Gaming and Everi as a combined enterprise, and I am honored to serve as Interim CEO once the transactions are completed. I look forward to working alongside Hector, Gil and Darren, and utilizing the opportunities we have in front of us to generate content-rich experiences and deliver unmatched value to our customers.”

Transaction Update

The previously announced acquisitions of IGT Gaming and Everi are still expected to be completed by the end of the third quarter of 2025, assuming the timely satisfaction of closing conditions, including certain gaming and regulatory approvals. On November 14, 2024, Everi stockholders approved the transaction. On November 20, 2024, at 11:59 p.m. ET, the waiting period under the Hart-Scott Rodino Antitrust Improvements Act of 1976 expired. The separation of the IGT Gaming business remains on track and is expected to be complete in early 2025.

Integration planning for the combined enterprise is underway, led by a dedicated team comprising representatives of the Apollo Funds, Everi and IGT Gaming.

About Hector Fernandez

Hector Fernandez most recently served as CEO of Aristocrat Gaming, overseeing the end-to-end delivery of Aristocrat’s global land-based business in over 300 gaming jurisdictions. Prior to the role of CEO, Hector served as President of the Americas and EMEA from June 2019 to March 2022, where he oversaw the majority of the segment’s operations, as well as the Chief Financial Officer for the Americas for Aristocrat from November 2018 to June 2019. Prior to joining Aristocrat, Hector helped oversee Strategy, Pricing and Planning at Western Digital and other progressive finance, strategy and accounting roles. Mr. Fernandez received an MBA in finance and marketing from USC’s Marshall School of Business and a B.A. in economics/accounting and government from Claremont McKenna College.

About Apollo

Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three investing strategies: yield, hybrid, and equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of September 30, 2024, Apollo had approximately $733 billion of assets under management. To learn more, please visit www.apollo.com.

Contacts

Noah Gunn
Global Head of Investor Relations
(212) 822-0540
IR@apollo.com

Joanna Rose
Global Head of Corporate Communications
(212) 822-0491
Communications@apollo.com

FAQ

When will Hector Fernandez become CEO of the IGT Gaming and Everi combined enterprise?

Hector Fernandez will join as CEO by the fourth quarter of 2025, after his non-compete period expires.

Who will serve as interim CEO of the combined IGT Gaming and Everi enterprise?

Nick Khin, currently President of Global Gaming at IGT, will serve as Interim CEO until Hector Fernandez assumes the role.

What are the three business units of the combined IGT Gaming and Everi enterprise?

The combined enterprise will be organized into Gaming (led by Nick Khin), Digital (led by Gil Rotem), and FinTech (led by Darren Simmons).

When is the IGT Gaming and Everi transaction expected to close?

The transaction is expected to close by the end of the third quarter of 2025, subject to gaming and regulatory approvals.