IGT Sells Double Down Interactive to DoubleU Games in $825M Social Casino Deal
International Game Technology (IGT) has struck a major deal in the social casino gaming space, announcing the sale of its Double Down Interactive studio to South Korea’s DoubleU Games for $825 million. The transaction marks a significant milestone for both companies and includes a long-term strategic partnership to expand their global social casino footprint.
A Lucrative Exit for IGT
IGT, the world’s largest slot machine manufacturer, originally acquired Double Down Interactive in 2012 for $500 million. At the time, the studio had just 70 employees but was a pioneer in the booming Facebook social casino market. Over the past decade, IGT successfully scaled Double Down into one of North America’s top social casino brands.
Key Deal Highlights:
- Purchase Price: $825 million (10.5x DoubleDown’s 2016 adjusted EBITDA)
- Strategic Partnership: Multi-year collaboration to promote social casino games globally
- Expected Closing: Q2 2017, pending regulatory approvals
Leadership Perspectives
Marco Sala, CEO of IGT, emphasized the strategic rationale behind the sale:
“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. After several years of strong organic growth and increasingly attractive valuation levels, the time is right to maximize value for our shareholders while maintaining exposure through our partnership with DoubleU Games.”
Ga-Ram Kim, CEO of DoubleU Games, highlighted the synergies:
*“This partnership combines DoubleU’s operational excellence with IGT’s world-class slot content, positioning us as a global leader in social casino gaming.”
Post-Sale Collaboration
Upon closing, the companies will enter into a game development and distribution agreement, allowing DoubleU Games to integrate IGT’s casino game library into its platforms in exchange for ongoing royalties. This ensures IGT retains a stake in the social casino market’s growth.
Financial & Legal Advisors
- IGT’s Advisors: The Raine Group & Credit Suisse (financial); Wachtell Lipton & Cooley LLP (legal)
- DoubleU’s Advisors: Deutsche Bank (financial); Kim & Chang & Morgan Lewis (legal)
Proceeds from the sale will support IGT’s corporate initiatives, including debt reduction. The company plans to update its financial outlook in late May 2017 alongside Q1 earnings.
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