IGT set for Facebook move

American computerised gaming equipment designer and manufacturer International Game Technology (IGT) has reached an agreement to acquire online social games developer Double Down Interactive.

Seattle-based Double Down Interactive has operated the popular DoubleDown Casino on Facebook since April 2004 and IGT revealed that it is ready to spend $500 million in order to purchase the business.

“As technological innovations increasingly influence consumer behavior, social dynamics are quickly transforming entertainment and gaming experiences everywhere,' said Patti Hart, Chief Executive Officer for Las Vegas-based IGT.

“The addition of Double Down Interaction 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.”

IGT stated that completion of the transaction is subject to ‘customary closing conditions’ including the ‘expiration or termination’ of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other ‘post-closing adjustments’. The agreed deal would see IGT hand over $250 million in cash from its existing reserves up front in addition to $85 million in retention payments over the next two years. There would also be a maximum of $165 million due over the next three years dependent on Double Down Interactive meeting certain financial targets.

“Double Down and IGT share complementary cultures focused on innovation and creativity,” said Greg Enell, Chief Executive Officer for Double Down Interactive.

“Both companies are committed to providing unrivaled quality, service and entertainment to millions of players.

“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 Interactive’s growth trajectory.”

IGT declared that its purchase of Double Down Interactive is expected to be completed during its second quarter, which end in March, and provide it with ‘instant size and scale in the fast growing world of casino-style social gaming’.