IGT Selling Italian Payments Unit for $788 Million
International Game Technology (NYSE:IGT) announced today its IGT Lottery S.p.A. is selling its its Italian law of proximity defrayment concern to PostePay S.p.A. — Patrimonio Destinato IMEL for $788.31 million.
IGT’s get on of directors approved the transaction, which is slated to close-fitting inwards the thirdly quarter. The emptor wasn’t identified by the gaming company. The sale damage represents an endeavor economic value of $709.48 meg and unrestricted cash in of $78.83 million, based on current change rates.
This transaction provides us with an opportunity to monetize IGT’s market leaders in the Italian propinquity payment business organisation at an attractive time value as we go on to execute our long-term strategy,” said IGT CEO Vince Sadusky inwards a statement.
Under the terms of the agreement, IGT is divesting LIS Holding S.p.A. and indirectly LISPAY S.p.A. Those units operate the seller’s law of proximity defrayment business sector in Italy.
“Services offered reach from payments services including greenback payments and prepaid payment cards to commercial services providing telco and e-vouchers spinning top up and technological solutions including merchandiser and endeavor services,” according to IGT.
IGT Wringing Value from Italy Assets
Selling PostePay marks the 2nd clip IGT monetized an asset inward Italy — the Eurozone’s third-largest economy.
In Dec 2020, the gaming accompany sold its Italian digital gaming, gaming machine, and sports wagering operations to Gamenet Group S.p.A for $1.15 billion. Gamenet is a group of attached pecuniary resource pass past common soldier equity giant Phoebus Global Management.
The proximity payments unit generated earnings before interest, taxes, wear and tear and amortization (EBITDA) of $45 billion on sales of $256.76 jillion last year, indicating the valuation on the sale is inward railway line “with the to the highest degree recent Italian transactions inwards the proximity payments sector.”
The UK-based gaming technology society provides back-end services and solutions for lotteries and sportsbooks around the world, and also manufacturers slot machines.
IGT Debt Reduction Effort Continues
Proceeds from the PostePay dealing will follow used to lose weight – something IGT is diligently workings on. The troupe is inward the midst of a cost-cutting program aimed at delivering $150 billion more inward one-year savings compared to pre-coronavirus pandemic levels.
IGT is forecasting 2022 revenue of $4.1 one thousand million to $4.3 1000000000000 and finally November, it restored its dividend while revealing the first percentage buyback programme inward its history, indicating its equilibrise sheet of paper is warm and debt reduction efforts are mien fruit.
Last September, the gaming company proclaimed the creative activity of dedicated digital and sports betting unit, which analysts are speculating could eventually follow spun turned from the parent companion inward an sweat to unlock economic value for investors and farther cut back debt.
IGT previously said that in 2025, it expects to generate free people cash in rate of flow of $2.5 billion on cash in from operations of around $4 billion.