IGT to sell Doubledown Interactive
News on 18 Apr 2017
News on 18 Apr 2017
International Game Technology has announced an agreement to sell its social casino subsidiary, Double Down Interactive LLC, to an affiliate of DoubleU Games Co., Ltd., a social casino operator headquartered in Seoul, South Korea, for $825 million.
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.
“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,” said Marco Sala, CEO of IGT in a company statement Monday.
“After 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. We will continue participating in the growth of the social casino market through our multi-year, strategic partnership with DoubleU Games.”
Ga-Ram Kim, CEO 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 confident about DoubleU Games’ future as a global leader in social casino.”
The cash purchase price of $825 million represents 10.5x DoubleDown’s full-year 2016 Adjusted EBITDA.
Proceeds from the transaction will be used for general corporate purposes, including debt reduction, according to the IGT statement.
Upon the closing of the sale, the parties will enter into a game development, distribution and services agreement which will enable DoubleU Games to offer IGT’s casino game library on DoubleU Games’ combined social casino platforms, in exchange for ongoing royalties to IGT.
The sale has been approved by the Board of Directors of IGT and the necessary governance body of DoubleU Games, and is subject to customary closing conditions, including regulatory approvals. The sale is anticipated to be completed in the second quarter of 2017.
