Las Vegas, Nevada has witnessed the largest merger ever in the history of gaming machines production. At a meeting in Las Vegas Thursday, between the International Game Technology (IGT), a United States based company operating from the city, and the Italian company GTECH, the Nevada Gaming Commission unanimously agreed upon the biggest amalgamation ever within the equipment manufacturing sector.
IGT and GTECH executives later justified the unification, stating that the merger would bring together the biggest slot machine maker in the world and the top rated lottery provider in the gaming industry. This merger will combine GTECH’s lottery technology and services, and their gaming operations with IGT’s game library, machine products, operating capabilities, and their manufacturing division. Together, the new company will support the power of these two gaming industry leaders, growing into the topmost lottery and gaming company in the world at present.
After announcing the deal, company officials in Las Vegas stated that the combined entity, IGT-GTECH, would now be branded as IGT. The deal would bring together revenues of more than a staggering $6 billion, including a cash inflow of close to $2 billion, based on the reports of the previous financial year. While IGT continues to shape the industry with new wave technology and visionary design, IGT will remain the global leader in delivering new innovations in gaming and the interactive space. Las Vegas has been experiencing a boost in business over the past few months as the U.S. economy revives. However, the largest merger ever in Las Vegas, would be considered a major shot in the arm for Nevada’s economy.
With its corporate headquarters located in the United Kingdom, the brand new IGT will maintain and continue operating its main offices in Las Vegas, Providence, R.I., and Rome. The machine giant’s further strategy is to continue growing its presence in Las Vegas, Nevada and across the United States. The company plans to make its manufacturing unit in Reno, Nevada a major output unit. Working to move out of the Italian Stock Exchange, the company GTECH would be listed in The New York Stock Exchange under the name,‘IGT’.
The present CEO of GTECH, Marco Sala, will continue to serve as the CEO of the newly merged IGT. The current Chairman of IGT, Phil Satre, will continue as the Chairman of the newly merged IGT. The existing CEO of IGT will now be the vice chairman. GTECH’s executive at the moment, Renato Ascoli, will manage the new IGT’s gaming and interactive divisions as CEO in North America. Present Chairman of GTECH, Lorenzo Pellicioli is the CEO of the De Agostini Group owning 50 percent of the new IGT.
The primary intention of this merger of the two giants in the gaming equipment industry is to provide a single roof service for their customers in Las Vegas and other places. The North American region will have two business units of the new IGT, each focussing on different clients in Las Vegas and other gaming centers. With its plans to expand, Las Vegas could see more employment due to the largest merger ever within the gaming equipment manufacturing sector.
By Ankur Sinha
Sources:
Review Journal
Street Insider
CBS
Photo by wbeem Flickr Page – License
