Gamenet completes acquisition of IGT’s Italian B2C business
Gamenet, a subsidiary of private equity firm Apollo Global Management, has bought IGT’s Lottomatica Italian B2C subsidiary for €1.1bn.
Italy.- Apollo Global Management’s Gamenet has completed its €1.1bn acquisition of Lottomatica’s Scommesse (sports betting) and Videolot Rete gaming machine units from IGT.
Gamenet will operate the Italian B2C units under the name Lottomatica, leveraging the brand’s heritage identity with the Italian public.
Gamenet said: “A new Lottomatica becomes the market leader of Italy’s regulated gaming market, leading the business segments of online, sports betting and gaming machines.”
Gamenet noted that the new-look Lottomatica will run a franchise network of 3,000 betting points, 1,400 gaming halls, 13,600 gaming machines in tobacco shops and bars, and 120 gaming venues.
Guglielmo Angelozzi, chief executive officer of the new Lottomatica, said: “This transformational deal makes our combined group one of the leading betting and gaming companies in Europe. We now turn our focus to rapid integration of all our assets and expansion into new geographical markets.
“We firmly believe that with our capabilities, our proprietary technology, our financial strength and the support from the team at Apollo, we will be able to effectively diversify in new markets and capture significant growth and consolidation opportunities.”
A strategic milestone for Apollo Global Management
Gamenet is a subsidiary of New York-headquartered investment firm Apollo Global Management, which described the acquisition of Lottomatica as a “strategic milestone”.
Partner Michele Rabà said: “Our funds have backed Gamenet with a significant equity injection to perform this transaction, which reshapes the Italian gaming market.
“We are enthusiastic about the continued growth prospects of the company following this transaction and we will continue to support Gamenet, now Lottomatica, in consolidating this sector beyond Italy.”
Apollo has been actively targeting a range of gaming acquisitions in the past year.
It has made an offer for Great Canadian Gaming Corp and reportedly has interest in William Hill’s European business after losing out to Caesars in a bid to buy the entire sportsbook company.
Despite selling the business, IGT will retain its presence in Italy with its Lottomatica B2B subsidiary continuing to serve as the operating company for the SuperEnalotto lottery.
It has not mentioned whether it will rebrand the business as a result of the sale of the B2C unit. Funds from the sale will be used to reduce long-term corporate debt.
