IGT to sell Italian proximity payment business to PostePay for €700m
International Game Technology (IGT) has announced that its wholly owned subsidiary IGT Lottery S.p.A. has signed a definitive agreement to sell its Italian proximity payment business to PostePay S.p.A. – Patrimonio Destinato IMEL for €700m ($781m).
IGT’s Board of Directors has approved the transaction. The deal remains subject to customary closing conditions, including regulatory approvals, and is expected to take place during the third quarter of 2022.
Under the terms of the agreement, IGT will sell LIS Holding S.p.A. and indirectly LISPAY S.p.A., the two wholly owned subsidiaries that conduct the group’s proximity payment business.
The total transaction price of €700m represents an enterprise value of €630m, together with approximately €70m of net unrestricted cash. IGT noted that it will use net proceeds from the sale primarily to reduce debt.
The group also noted that the business being sold generated around €228m and €40m in gross revenue and EBITDA in 2021.
UBS AG will act as lead financial advisor and fairness opinion provider to IGT, with UniCredit S.p.A. acting as financial advisor to the group. Advant-Nctm is acting as legal advisor to the company, and KPMG is acting as financial due diligence and tax advisor to the company.
IGT CEO Vince Sadusky commented: “This transaction provides us with an opportunity to monetize IGT’s market leadership in the Italian proximity payment business at an attractive value as we continue to execute our long-term strategy.
“Streamlining our products and solutions portfolio enables us to focus our efforts and resources on our core and strategic assets, as we position IGT for industry leadership and increased shareholder value.”
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