IGT Purchases Double Down Interactive

A Nevada based reputed slot machine producer, International Game Technology (IGT) entered into an acquisition deal recently with an online gambling company, Double Down Interactive. The deal has been settled at $500 million. The agreement was made within less than a month of Nevada gaming regulators adopting online poker regulations. With these regulations, Nevada aims at becoming the first US state to accept wagers in a legal environment.

IGT will Dominate the Market with Double Down’s Addition

With Double Down’s acquisition, IGT is expected to dominate the market for social gaming. According to IGT’s CEO, Patti Hart, the deal will open new mediums to extend the global reach of the company. In a joint statement given by both firms, Patti Hart stated that his company will be able to leverage its expertise in developing games with the partnership.

IGT and Double Down Share Similar Cultures

IGT and Double Down share similar cultures. Both companies are committed to provide their customers unmatched entertainment and best quality online gambling services. The customer-base of these firms is about a million. According to Greg Enell, the Chief Executive Officer of Double Down, the best-in-class content of IGT will enable Double Down’s player-base to experience world class services. This will in turn, enhance the growth rate of the company.

Double Down Players don’t Wager with Real Money

Double Down’s players don’t wager with real money. They accumulate points by playing against each other. This kind of activity is referred to as online social gaming. Players also compete against automated opponents sometimes. 1 million players flock the site on a daily basis, according to Double Down.

Cash Break-Up of the Acquisition Deal

In the $500 million acquisition deal, $250 million will be paid in cash. $85 million will be paid in the form of retention payments. About $165 million will be paid over a period of three years. The amount will be paid at times when Double Down has financial targets to meet. It is expected that the cash will be paid on hand to Double Down management when they need it.

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