International Game Technology (IGT) has announced that its Board of Directors is undertaking a strategic review of its PlayDigital and Global Gaming segments. The company has reported that future options could include a sale, a merger or a spin-off.
IGT could also potentially maintain and invest further in both the PlayDigital and Global Gaming businesses. Deutsche Bank, Macquarie Capital and Mediobanca have been brought on as financial advisors, while both Sidley Austin and White & Case will serve as legal counsel.
Marco Sala, IGT Executive Chair, said, "Over the last three years, IGT has sharpened its strategic focus by reorganizing around core product verticals, monetizing non-core assets, reducing structural costs and significantly improving its credit profile.
“We believe the intrinsic value of IGT's businesses and diversified cash flow profile is not currently reflected in our stock price and the timing is right to assess opportunities that may enhance value for IGT's shareholders."
IGT’s current listed price on the New York Stock Exchange is $27.57, with $28.65 showing as the highest price it has achieved within the last six months.
Vince Sadusky, IGT CEO, said, "We remain focused on the execution of our growth objectives and multi-year goals as we undertake this review and evaluation of strategic alternatives. Regardless of the outcome of this process, IGT is well-positioned to deliver on its long-term growth and profit targets."
No timeline has been allotted to the review, and no decision has been made. IGT has not made specific comment on whether evaluation of any alternatives will lead to transactions, and reported that it will not provide updates until required.
