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IGT CEO Vince Sadusky highlighted the company’s cultural compatibility with Everi ahead of the two companies’ business combination.

Sadusky argued the positive features of Everi’s culture made it an ideal partner to merge with, alongside the company’s games development and fintech strengths.

Sadusky was speaking with Everi CEO Randy Taylor in a 7 May fireside chat to inform investors and employees about the status of the ongoing merger.

IGT announced in February it would be merging its land-based and online gaming businesses with Everi after spinning off its lottery division as a standalone entity.

Since the announcement, uncertainties over the success of the merger’s implementation have led to some analysts giving IGT stock a Hold rating.

These uncertainties, which include both regulatory and business factors, may have contributed to IGT’s share price slump since March, with the stock down almost 30% over the past six months.

Sadusky said: “We were really impressed at how Everi continued to move through the financial services markets.

“The delivery of your services is so high quality that you’re very highly thought of. And then to build a gaming business on the back of that, I think was incredibly innovative, and you all had some very good successes.”

IGT-Everi: Complementary portfolios?

IGT executive VP of corporate development Fabio Celadon said the merger would benefit from the complementarity of the two companies’ portfolios.

He pointed to Everi’s fintech offering fitting in well with IGT’s own casino management system solution as evidence of this.

IGT’s strength in speciality markets such as poker and VLTs would mesh well with Everi’s strong points in Class I gaming machines, Celadon added.

“It’s a portfolio that comes together nicely and, unlike some of the combinations in the past that had a lot of integration hiccups, we don’t anticipate that for that very reason.”

The VP also dismissed concerns the integration will lead to a lack of support for some existing product lines.

“In fact, I would say the opposite,” he said. “It is our strong interest and commitment to continue to support all product lines and products and services through their end of life.”

IGT’s international distribution footprint was also highlighted as an area that would prove useful for Everi’s products and services, which are so far largely US-based.

Following completion of the deal, the new company is expected to be worth an enterprise value of $6.2bn.

Pro-forma 2024 revenue is predicted to come in at $2.4bn, with $1.5bn in EBITDA. The deal is also expected to generate $85m in cost savings and efficiencies.

Sadusky added that if the result of the merger was just cost saving as opposed to creating high-value products and services, then he would view it as a “complete failure.”

“If we don’t deliver on the costs, but we’ve done a really great job with our R&D dollars, and we find ourselves much more valuable to our customers than we are individually, and we’ve got great products coming down the line and our winning games increase collectively, that’s a home run for our company.”

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