IGT To Sell Double Down Interactive LLC To DoubleU Games As Strategic Partnership In Social Casino for $825 million
IGT announced on Monday they were signing its purchase agreement with a South Korean social gaming operator for the sale of their interactive social gaming division, DoubleDown Casino. The definitive purchase agreement guarantees International Game Technology to receive $825 million which is equal to more than 10x of DoubleDown’s adjusted earnings for last year. The proceeds IGT receives from the sale will be used for general purposes within the company including paying down its debt.
IGT CEO, Marco Sala released the following statement Monday,
“several years of strong, organic growth and increasingly attractive valuation levels, the time is right for us to maximize the value of this asset for our shareholders.”
DoubleU, the South Korean game giant’s CEO Ga-Ram Kim is excited about the deal saying it’s “a unique and value-accretive partnership” combining the best of both companies. Kim also expressed confidence about DoubleU Games’ future as “a global leader in social casino.”
The deal has been approved by both companies. The only approval left is a regulatory one with approval being expected sometime in the second quarter of this year. IGT said this agreement deal will establish a “multi-year strategic partnership” with being able to “provide innovative player experiences”.