The Italian commercial payment business was operated by IGT’s wholly owned subsidiary IGT Lottery.
The negotiated sale price represented an enterprise value of €630m and €70m of net unrestricted cash.
At closing, IGT Lottery’s payment business held €140m in unrestricted cash. The supplier says this amount represents an unrestricted cash increase from its previous financial report.
IGT attributes the cash increase to the timing of vendor payments and operating cash flows generated since 31 December 2021.
The €140m left to IGT will be used to pay transaction expenses and reduce debt, says the supplier.
UBS AG acted as IGT’s lead financial advisor and fairness opinion provider in the sale of its payment business.
It was supported in its role as financial advisor by UniCredit, while Advant-Nctm acted as IGT’s legal advisor and KPMG the financial due diligence and tax advisor.
In August, IGT reported Q2 2022 revenue down 2% year-on-year, generating $1.02bn, $200m less than it did in Q2 2021.
In fact, it was IGT’s Lottery that took the biggest financial hit, with its revenue amount of $648m for Q2 representing an 11% loss against the $725m taken in Q2 2021.
Therefore, the supplier’s sale of its Italian proximity payment business suggests IGT is giving its subsidiary a financial boost, following disappointing results from the most recent financial quarter.