International Game Technology (IGT) has reportedly inked a massive deal that will see it pick up a major amount of cash just when it needs it the most. The gaming technology company announced that it has signed a definitive agreement to sell its B2C operations in Italy, including those tied to gaming machine operations, sports gambling and digital gaming, and, once the sale is complete, will pick up $1.15 billion. That money will go a long way to seeing the company pay off a portion of its outstanding, and growing, debt. 

IGT is going to sell its entire stake in Lottomatica Videolot Rete S.p.A. and Lottomatica Scommesse S.r.l to Gamenet Group S.p.A., which is controlled by an affiliate of Apollo Global Management, Inc. $879.5 million of the sales price will be collected once the final agreement is signed, with another $121.3 million due at the end of next year. After that, the remaining $151.6 million will have to be paid no later than September 30, 2022. 

Says IGT CEO Marco Sala, “The transaction enables IGT to monetize its leadership positions in the Italian B2C gaming machine, sports betting, and digital spaces at an attractive multiple to comparable Italian transactions, providing us with enhanced financial flexibility. Aligning with our recent reorganization, the favorable rebalancing of our business and geographic mix reframes and simplifies our priorities while improving the Company’s future profit margin, cash flow generation, and debt profile.”

The deal has to be approved by regulators and go through the standard scrutiny assigned to transactions of this magnitude. Provided everything goes smoothly, and IGT doesn’t run into any obstacles, the two sides should be able to see everything come to a close sometime during the first half of next year.