International Game Technology PLC Announces Completion of Sale of Italian Commercial Payment Business to PostePay S.p.A.

Rhea-AI Summary

International Game Technology (NYSE:IGT) announced the completion of the sale of its Italian proximity payment business to PostePay for €700 million. The transaction reflects an enterprise value of €630 million, with €70 million in net unrestricted cash. At closing, the business held around €140 million in unrestricted cash, benefiting from improved cash flows since December 31, 2021. Proceeds will be allocated primarily to pay transaction expenses and reduce debt. UBS AG, UniCredit, Advant-Nctm, and KPMG provided advisory services for the transaction.

Positive

• Sale of Italian payment business generates €700 million in proceeds.
• Improved cash position with €140 million in unrestricted cash at closing.
• Reduced debt from transaction proceeds enhances financial stability.

Negative

• None.

LONDON, Sept. 15, 2022 /PRNewswire/ -- International Game Technology PLC (NYSE:IGT) ("IGT") today announced that its wholly owned subsidiary IGT Lottery S.p.A. has completed the sale of its Italian proximity payment business to PostePay S.p.A. – Patrimonio Destinato IMEL for €700 million.

The negotiated sale price represented an enterprise value of €630 million and approximately €70 million of net unrestricted cash. The business held approximately €140 million in unrestricted cash at the closing. The increase in unrestricted cash is primarily attributable to timing of vendor payments and operating cash flows generated since December 31, 2021. IGT will use the proceeds from the transaction primarily to pay transaction expenses and reduce debt.

UBS AG acted as lead financial advisor and fairness opinion provider to IGT, UniCredit S.p.A. acted as financial advisor to IGT. Advant-Nctm acted as legal advisor to IGT and KPMG acted as financial due diligence and tax advisor to IGT.

About IGT
IGT (NYSE:IGT) is a global leader in gaming. We deliver entertaining and responsible gaming experiences for players across all channels and regulated segments, from Lotteries and Gaming Machines to Sports Betting and Digital. Leveraging a wealth of compelling content, substantial investment in innovation, player insights, operational expertise, and leading-edge technology, our solutions deliver unrivalled gaming experiences that engage players and drive growth. We have a well-established local presence and relationships with governments and regulators in more than 100 countries around the world, and create value by adhering to the highest standards of service, integrity, and responsibility. IGT has approximately 10,500 employees. For more information, please visit www.IGT.com.

Cautionary Statement Regarding Forward-Looking Statements
This news release may contain forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning IGT and its consolidated subsidiaries (the "Company") and other matters. These statements may discuss goals, intentions, and expectations as to future plans, trends, events, dividends, results of operations, or financial condition, or otherwise, based on current beliefs of the management of the Company as well as assumptions made by, and information currently available to, such management. Forward-looking statements may be accompanied by words such as "aim," "anticipate," "believe," "plan," "could," "would," "should," "shall," "continue," "estimate," "expect," "forecast," "future," "guidance," "intend," "may," "will," "possible," "potential," "predict," "project" or the negative or other variations of them. These forward-looking statements speak only as of the date on which such statements are made and are subject to various risks and uncertainties, many of which are outside the Company's control. Should one or more of these risks or uncertainties materialize, or should any of the underlying assumptions prove incorrect, actual results may differ materially from those predicted in the forward-looking statements and from past results, performance, or achievements. Therefore, you should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include (but are not limited to) the factors and risks described in the Company's annual report on Form 20-F for the financial year ended December 31, 2021 and other documents filed from time to time with the SEC, which are available on the SEC's website at www.sec.gov and on the investor relations section of the Company's website at www.IGT.com. Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements. You should carefully consider these factors and other risks and uncertainties that affect the Company's business. All forward-looking statements contained in this news release are qualified in their entirety by this cautionary statement. All subsequent written or oral forward-looking statements attributable to International Game Technology PLC, or persons acting on its behalf, are expressly qualified in their entirety by this cautionary statement.

Contacts
Phil O'Shaughnessy, Global Communications, toll free in U.S./Canada +1 (844) IGT-7452 and outside U.S./Canada +1 (401) 392-7452
Francesco Luti, Italian media inquiries, +39 06 5189 9184
James Hurley, Investor Relations, +1 (401) 392-7190

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SOURCE International Game Technology PLC

FAQ

What was the sale price of IGT's Italian payment business?

International Game Technology sold its Italian payment business for €700 million.

What will IGT do with the proceeds from the sale?

IGT plans to use the proceeds primarily to pay transaction expenses and reduce debt.

What is the enterprise value associated with the sale of IGT's payment business?

The sale represented an enterprise value of €630 million.

How much unrestricted cash did the payment business have at closing?

The business held approximately €140 million in unrestricted cash at the closing.

Who advised IGT on the sale of its Italian payment business?

UBS AG acted as lead financial advisor, with UniCredit, Advant-Nctm, and KPMG providing additional advisory services.