The news of a merger transaction caused the stock price of Everi Holdings Inc. (NYSE: EVRI) to rise significantly. The stock of EVRI shot up 41.62% to $12.94 on the US stock charts as of the most recent market update.

Everi Entered The Merger Agreement

International Game Technology PLC (IGT) and Everi (EVRI) announced that they have entered into final agreements whereby IGT's Gaming & Digital business ("IGT Gaming") and Everi will be purchased by a newly formed holding company at the same time. This holding company will be acquired in an all-cash transaction valued at roughly $6.3 billion for the merged firms. The funds managing the holding company are affiliates of Apollo Global Management, Inc.

The parameters under which IGT will spin off its IGT Gaming company in a taxable transaction to its shareholders and then merge this business with EVRI were disclosed by the firms on February 29, 2024. IGT Gaming and Everi will be purchased by the Apollo Funds, combining the two companies into a single privately held company.

Consequences and Prospects

Everi investors will get $14.25 in cash per share under the amended agreements, which is a 56% premium over its closing share price on July 25, 2024. Gross cash profits for IGT Gaming will be $4.05 billion, with a sizeable chunk designated for shareholder payouts and debt reduction.

Upon completion of the transaction, IGT will rebrand and change its stock ticker symbol, emerging as a leading pure-play lottery business. The transaction has received unanimous approval from a special committee of the IGT Board of Directors and all members of the EVRI Board of Directors. Consequently, the prior transaction agreements between IGT and Everi from February 28, 2024, have been terminated.

This transaction preserves the strategic rationale of EVRI's original agreement with IGT while providing substantial and certain value to its stockholders. By combining forces with IGT Gaming, the company aims to continue its leadership and innovation in the global gaming, FinTech, and digital industries. As a privately owned entity, Everi believes it will be better positioned to accelerate the integration of the two organizations for the benefit of customers and employees.