IGT to offload its Double Down Interactive
International Game Technology (IGT) has agreed a deal to sell its Double Down Interactive LLC social casino subsidiary to an affiliate of DoubleU Games Co.
Under the definitive purchase agreement, social casino operator DoubleU Games, which is headquartered in Seoul, South Korea, will purchase the business unit for $825 million (€774.9 million).
IGT said the transaction “establishes a new multi-year strategic partnership between IGT and DoubleU Games to provide innovative player experiences in the social casino market worldwide”.
The firm added that funds from the acquisition will be used for general corporate purposes, including debt reduction.
Upon the closing of the sale, which is expected to go through before the end of the second quarter, the parties will enter a game development, distribution and services agreement, which will enable DoubleU Games to offer IGT’s casino games on its combined social casino platforms, in exchange for royalties to IGT.
“Since acquiring DoubleDown in 2012, IGT has grown it into one of the largest and most successful brands in the North American social casino market,” IGT chief executive Marco Sala said,
“After several years of strong, organic growth and increasingly attractive valuation levels, the time is right for us to maximise the value of this asset for our shareholders.
“We will continue participating in the growth of the social casino market through our multi-year, strategic partnership with DoubleU Games.”
The sale has been approved by the board of directors at IGT and the necessary governance body of DoubleU Games, but remains subject to customary closing conditions.
Ga-Ram Kim, chief executive of DoubleU Games, added: “This transaction represents a unique and value-accretive partnership combining the operational excellence of DoubleU Games with IGT's world-class slot content.
“With this partnership, we are excited and confident about DoubleU Games' future as a global leader in social casino.”
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