Transaction propels IGT into a leadership position within social gaming
Double Down is anticipated to contribute rapid user and revenue growth
Combination allows IGT to leverage Facebook distribution channel
Acquisition estimated to be accretive to IGT's fiscal year 2012 adjusted
LAS VEGAS, Jan. 12, 2012 /CNW/ - International Game Technology (NYSE:
IGT), the global leader in the design, development and manufacture of
gaming machines and systems products, as well as online and mobile
gaming solutions for regulated markets, has reached a definitive
agreement to acquire Double Down Interactive LLC – a leading online
social gaming company and developer of the popular DoubleDown™ Casino
found on Facebook.
Launched in April 2010, the DoubleDown™ Casino is the world's largest
virtual casino and one of the top 4 social media games in 2011 as rated
by Facebook. According to AppData.com, DoubleDown™ Casino currently
has 4.7 million monthly active users, up from 3.3 million in October
2011. With a broad and expanding portfolio, Double Down offers
blackjack, slots, slot tournaments, video poker, and roulette to social
gamers all around the world.
The total consideration includes $250 million in cash, $85 million in
retention payments over the next two years and up to $165 million in
cash payable over the next three years subject to Double Down meeting
certain financial performance targets. IGT expects to fund the
transaction from cash on hand.
The addition of Double Down provides IGT instant size and scale in the
fast growing world of casino-style social gaming and is expected to
broaden IGT's popular gaming titles beyond the physical casino to
Facebook, the world's largest social network with over 800 million
global users. This powerful distribution model is anticipated to
provide IGT an opportunity to entertain players with consistent,
ubiquitous, thrilling gaming experiences across multiple platforms.
"Double Down and IGT share complementary cultures focused on innovation
and creativity. Both companies are committed to providing unrivaled
quality, service and entertainment to millions of players," said Greg
Enell, CEO of Double Down. "Leveraging IGT's Research and Development,
global reach, and best-in-class content will provide our loyal player
base with an even more robust experience and is expected to augment
Double Down's growth trajectory."
"As technological innovations increasingly influence consumer behavior,
social dynamics are quickly transforming entertainment and gaming
experiences everywhere," said Patti Hart, CEO of IGT. "The addition of
Double Down launches IGT into a leadership position in social gaming,
extends our global reach through new mediums, and leverages our
unmatched expertise in game development. We intend to drive meaningful
value from this rapidly growing distribution platform that reaches a
new, but complementary, demographic of gamers."
The transaction is estimated to be accretive to IGT's fiscal 2012
adjusted earnings and is projected to close within the second quarter
of its current fiscal year. Greg Enell will continue to lead Double
Down and the company's operations will remain in Seattle, WA after the
acquisition is complete. Through the integration, IGT will operate
Double Down with the appropriate level of independence needed to
continue to foster exceptional growth.
Completion of the transaction is subject to customary closing conditions
including, but not limited to, the expiration or termination of the
waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.
The final purchase price is subject to certain post-closing
Conference Call Information
IGT will host a conference call regarding its acquisition of Double Down
on Friday, Jan. 13, 2012, at 5:00 a.m. PST. The access numbers are as
Domestic callers dial 888-606-7043, pass-code IGT
International callers dial 1-212-547-0361, pass-code IGT
The conference call also will be broadcast live over the Internet. A
link to the webcast is available at the IGT website: http://www.IGT.com/InvestorRelations. If interested parties are unable to participate during the live
webcast, the call will be archived until Friday, Jan. 27, 2012 also at http://www.IGT.com/InvestorRelations.
Interested parties who cannot participate at the time of the call may
listen to a taped replay of the entire conference call commencing at
approximately 7:00 a.m. PST on Friday, Jan. 13, 2012. This replay will
run through Friday, Jan. 27, 2012. The access numbers are as follows:
Domestic callers dial 888-568-0521
International callers dial 1-402-998-1495
About Double Down Interactive
Double Down Interactive is the leading casual games developer of "fun to
play" casino experiences on the Internet. With veterans from top online
game companies, the team is committed to providing consumers an online
social casino experience that is unrivaled by anything else available.
Anyone can play at the DoubleDown Casino by visiting http://apps.facebook.com/doubledowncasino/ or www.doubledowncasino.com. Double Down Interactive is based in Seattle, Washington.
International Game Technology (NYSE: IGT) is a global leader in the
design, development and manufacture of gaming machines and systems
products, as well as online and mobile gaming solutions for regulated
markets. More information about IGT is available at www.IGT.com or follow IGT on Twitter at @IGTNews or Facebook at www.facebook.com/IGT.
Safe Harbor Statement under the Private Securities Litigation Reform Act
This press release contains forward-looking statements that involve
risks and uncertainties concerning the proposed acquisition of Double
Down Interactive, including the expected benefits of the acquisition to
IGT and IGT's strategic, financial and operational expectations for its
business, including the Double Down business following the closing of
the acquisition. Actual events or results may differ materially from
those described in this press release due to a number of risks and
uncertainties, including, among others, the possibility that the
transaction might not close or that the closing may be delayed, IGT's
integration of Double Down, its products, technologies and employees
may experience difficulties, and the anticipated benefits of the
transaction to IGT and its customers might not be realized. More
information about potential factors that could affect IGT's business
and financial results is included in IGT's filings with the Securities
and Exchange Commission, including under the captions "Risk Factors"
and "Management's Discussion and Analysis of Financial Condition and
Results of Operations" in IGT's Annual Report on Form 10-K for its 2011
fiscal year, and available on the SEC website at www.sec.gov and on the investor relations section of IGT's website at www.IGT.com. All information provided in this release is as of January 12, 2012 and
IGT does not intend, and undertakes no duty, to update this
For further information:
Matt Moyer, Vice President, Investor Relations of IGT, +1-775-448-1581, or Staci Alonso, Vice President, Marketing of IGT , +1-775-448-1581