IGT Sells Social Casino Business South Korean Gaming Company

IGT Sells Social Casino Business South Korean Gaming Company

IGT Sells Social Casino Business South Korean Gaming Company

International Game Technology (IGT), a firm specializing in slot and video gaming machine design has approved the sale of its social casino-oriented subsidiary Double Down Interactive LLC, a South Korean company called DoubleU Games Co.

Double Down Interactive develops social casino games and is most known for the game, Double Down Casinos, which has often been described as one of North America’s largest social casino platforms. NYSE -listed IGT bought Double down for $ 500 million in the beginning of 2012.

IGT has sold Double Down Interactive for $ 825 million will go to a subsidiary of DoubleU Games Co, which is one of South Korea’s leading global social casino operators.

In a statement, Marco Sala, CEO of IGT, said:

Since the acquisition to Double in 2012, IGT has become one of the largest and most successful brands in the North American social casino market. After a number of years of strong organic growth and more attractive valuation levels, the time is ripe for us to maximize the value of these assets for our shareholders

Sala also highlighted that the cooperation between them would be continued through a multi-year, strategic agreement. the Ga-Ram Kim, CEO of DoubleU Games stated that the transaction would combine operational excellence with IGT’s world-class slot content. He added the acquisition will help the company in its journey to become a global leader in the social space casino.

The deal price is 10.5 times the full-year 2016 Adjusted EBITDA of Double Down. The proceeds of the sale are expected to be in the direction of reduction of the debt and other business doeleinden.De deal is approved by the IGT Board of Directors and also by the key governance committee of DoubleU Games. IGT has stated that it would be an adjustment of the financial perspective with the expected consequences of the deal at the end of May together with the release of this year, the first quarter results.

After the completion of the sale, the two companies will enter into an agreement which DoubleU Games to present IGT’s casino games library on the merged social casino platform with IGT receiving royalties.

According to the latest results released in March, the full-year 2016 net income for IGT was $ 211.3 million, while adjusted EBITDA was nearly$ 1.76 billion. The Double Down division recorded revenue of $ 280.0 million for the whole of 2016, a decrease of 11.7 percent in 2015. It also saw a decrease of 14.3 percent in terms of the average number of daily active users, with a decrease of 1.6 million euros.

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