€1.1bn acquisition of part of IGT italian business by Gamenet, backed by Apollo

Gamenet Group (“Gamenet”), a company controlled by funds managed by Apollo Global Management (“Apollo”), has signed an agreement for the acquisition of part of International Game Technology Plc (“IGT”) Italian business.

The IGT perimeter acquired by Gamenet includes online/sports betting and gaming machines B2C businesses, with 2019 revenue of € 850m and EBITDA of € 205m€ 1.1bn EV (5.4x EBITDA 2019) with an all-cash purchase price of € 950m, including a € 225m deferred payment by Sep. 2022 with no CPs.

Gamenet becomes the undisputed leader in the Italian gaming market with pro forma 2019 aggregated revenue of c. € 1.6bn and EBITDA of c. € 370m

The deal will unlock significant cost synergies: up to € 50m per annum (2 years after closing), thus resulting in a combined EBITDA of approx. € 420m post synergies

The transaction is subject to customary closing conditions, including the authorization of the Italian Customs and Monopolies Agency and the approval of the relevant competition authority, and is expected to close in the first half of 2021

Mediobanca has acted as sole financial advisor to Gamenet.

This transaction is the first sizeable M&A deal by Mediobanca in the gaming industry in recent years and represents the start of a fruitful relationship with Gamenet.

In the context of a highly regulated sector, this deal is also a confirmation of Mediobanca strength and expertise in the dialogue with Public Institutions / Regulators.