NetEntertainment and SPIELO International UK Limited, a subsidiary of GTECH S.p.A. have signed a Global Game Supply Framework Agreement. 

NetEntertainment will have the opportunity to provide its online casino games to World Lottery Association (WLA) exclusively through GTECH. 

Björn Krantz, Chief of GMO and MD Net Entertainment Malta Ltd. said: “GTECH is a global leader within the regulated WLA operator segment, and we are very excited about this partnership which will allow Net Entertainment the opportunity to efficiently reach a new market segment that nicely fits into our growth strategy. The WLA lottery market requires trustworthy, reliable and stable partners, and GTECHs selection of Net Entertainment is yet more proof of the trust and confidence that exists in our delivery capabilities.”

Renato Ascoli, General Manager, GTECH S.p.A. and President, GTECH Products and Services commented: “Net Entertainment offers a vast library of top-performing online casino games and in combination with their technology and operational leadership, we are confident that our selection of Net Entertainment will further strengthen GTECH’s position as the supplier of choice for new and existing WLA customers. 

“This agreement with Net Entertainment will enable GTECH to offer our lottery customers a high volume of some of the best online casino games in the market with minimal turnaround time, supporting our customers’ mission of generating revenue for the populations they serve by creating and enhancing sustainable and entertaining interactive gaming programs.”

GTECH S.p.A. has spent around GBP 18 Million to complete its cash acquisition of Probability Plc.

“With the mobile gaming market poised for significant growth over the next several years, we view the acquisition of Probability as a logical stepping stone for advancing our mobile gaming strategy both Internationally & in the U.S. , particularly for new & existing WLA customers & commercial customers. Probability’s unique content service offerings & its exclusive game development & management platform will further advance our mobile strategy,” said Renato Ascoli, GTECH S.p.A. President of Products & Services. 

Charles Cohen, Probability CEO added: “This acquisition will facilitate the immediate pooling of knowledge & expertise currently within GTECH & Probability, allowing us to accelerate deployment of existing game technology into the mobile market as well as pursue cross-selling opportunities. The combination of GTECH’s global presence coupled with the market efficacy of our integrated solutions will position us to take advantage of Gaming 2.0 - the next critical phase of the gaming market characterized by the dominance of mobile.”

Gambling and lottery supplier group GTECH has revealed that it’s talking with IGT about buying the company. 

GTECH has hired advisers to help in the talks. The company told Reuters news agency that the transaction could involve the use of a mix of cash and equity as consideration and that it does not expect needing a cash call to fund the acquisition. 

In coordination, IGT has also issued a statement:

"IGT regularly considers, and on occasion explores, a broad range of strategic alternatives, including but not limited to business combinations, changes to our capital structure & adjustments to our portfolio of businesses, with the goal of maximizing shareholder value.

"The IGT Board of Directors and senior management are currently engaged in such an exploration, but no decisions have been made by the Board regarding any particular alternative available to the Company and there can be no assurances that any transaction or other strategic change will be entered into as a result of the current exploration of alternatives.

"IGT does not intend to discuss or disclose developments with respect to this general subject unless & until the Board has approved a definitive course of action."

GTECH will acquire IGT for $6.4bn.

The purchase works out at $18.25 per share and comprises of $4.7bn in cash and stock and $1.7bn in debt assumption. The companies expect to achieve $280m in synergies.

The new company will be based in London and traded on the New York Stock Exchange as GTECH and will no longer trade as IGT in New York and as Lottomatica in Italy.

Patti Hart, CEO of IGT said this merge “redefines the future of the gaming industry.”

“This transaction is transformational for our business. With limited overlap in products and customers, the combined company will enjoy leading positions across all segments,” said Marco Sala, GTECH SEO. 

Sala will take on the function of CEO of the new company, which will have its corporate headquarters in the UK and operating headquarters in Nevada and Rome. After the merger, GTECH shareholders will own 80 per cent of the company and IGT shareholders 20 per cent. De Agostini, which owns 59 per cent of DTECH, will own 47 per cent of the new company. 

GTECH expects to finance the acquisition with cash on hand and borrowing. It has binding commitments for financing from Credit Suisse, CitiCorp and Barclays for $10.7bn.

 The new company’s 13-member board of directors will include five directors appointed by IGT from IGT’s existing board, including IGT chairman Phil Satre, who will be chairman of the new company. Patti Hart will serve on the board.

 GTECH will appoint seven members, at least of four of whom will be independent and one of whom will serve as a vice-chairman.

The US antitrust authorities have granted early termination of the required waiting period to GTECH’s acquisition of IGT.

As previously announced on July 16, 2014, GTECH and IGT entered into a definitive merger agreement under which GTECH will acquire IGT in a transaction valued at $6.4bn, comprised of $4.7bn in cash and stock, and the assumption of $1.7bn in net debt.

Under the terms of the transaction, GTECH and IGT will combine under a newly-formed holding company organised in the UK.

The transaction, which has been approved by the boards of directors of both companies, is currently expected to be completed in the first or second quarter of 2015.