Gamenet Group S.p.A. entered into an agreement to acquire Lottomatica Videolot Rete S.p.A. and Lottomatica Scommesse S.r.l. from Lottomatica Holding S.R.L. for an enterprise value of approximately €1.1 billion on December 6, 2020.  The sale price is €950 million, with €725 million payable at closing, €100 million payable on December 31, 2021, and the remaining €125 million payable on September 30, 2022. The deferred consideration is not subject to any conditions other than closing.

The consideration will be funded from an equity commitment letter from the Apollo-managed funds. The businesses being sold generated aggregated adjusted EBITDA of €206.6 million and aggregated net income of €92.1 million in 2019. The transaction is subject to customary closing conditions including regulatory approvals. The Board of Directors of International Game Technology has unanimously approved the transaction. IGT expects that the transaction will close in the first half of 2021. The proceeds from the transaction will be used to reduce debt.

White & Case and NCTM acted as legal advisors and Credit Suisse International is acted as financial advisor to International Game Technology. UBS acted as financial advisor and fairness opinion provider to International Game Technology and its Board of Directors. Mediobanca acted as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP and Italian offices of Cleary, Gottlieb, Steen & Hamilton LLP acted as legal advisors to Gamenet. Stefano Sciolla of Latham & Watkins LLP acted as legal advisor to Gamenet Group S.p.A. and Apollo Management. Barclays Bank Ireland PLC acted as financial advisor to Gamenet Group S.p.A. O'Melveny & Myers LLP acted as legal advisor to Apollo Management.