IGT Expands Digital Content Portfolio in $174M iSoftBet Acquisition
Posted on: April 11, 2022, 09:51h.
Last updated on: April 13, 2022, 09:30h.
International Game Technology (NYSE:IGT) is expanding its library of digital games in a big way with the $174 million, all-cash acquisition of iSoftBet, a provider of iGaming content.
The deal boosts IGT PlayDigital’s portfolio to 225 games, more than doubling its current roster. The transaction is slated to close in the current quarter.
The acquisition of iSoftBet will provide market-tested proprietary digital content, advanced game aggregation capabilities, scalable promotional tools, analytics and strong creative talent to IGT’s PlayDigital operations,” said IGT CEO Vince Sadusky in a statement.
iSoftBet’s content library includes 125 proprietary games and more than 4,600 third-party games that are aggregated through the company’s platform.
Acquisition Jibes with IGT Digital Ambitions
IGT has long been known as a dominant maker of slot machines and one of the world’s largest lottery operators. But the firm also has iGaming ambitions.
Last September, the company announced the formation of a dedicated digital and betting unit. The UK-based gaming technology company provides back-end services and solutions for lotteries and sportsbooks around the world, and also manufacturers slot machines.
The digital gaming and sports wagering arm will be structured as a new entity — a transaction that should be completed over the next year — and that could eventually lead to the business being spun off from the parent company. The iSoftBet deal meshes with those ambitions and could serve as an avenue for IGT to expand an already healthy geographic footprint.
“With primary office locations in England, Malta, and Romania, and approximately 350 employees and contractors, iSoftBet has approximately 260 iGaming operators as customers, and its games are certified by 20 European regulators,” according to the statement.
For IGT investors, there’s good news due to the fact the iSoftBet was profitable on the basis of earnings before interest, taxes, depreciation and amortization (EBITDA) last year.
IGT Busy in iGaming Space
IGT is actively cobbling together internet gaming agreements and deals in a bid to bolster its footprint in a fast-growing industry.
Last November, the maker of the famed Wheel of Fortune slot machine said it signed a multi-year iGaming content distribution agreement with leading online gaming content creator Yggdrasil Gaming. That provides IGT with exposure to iGaming in Canada and US states where that form of wagering is allowed.
In the fourth quarter, IGT’s digital and betting unit posted revenue of $42 million on EBITDA of $9 million. The company also in the midst of an active debt-reduction campaign, paring its leverage to 3.5x — the best mark in its history — during the last three months of 2021.