PostePay to Acquire IGT Italian Proximity Payment Business
International Game Technology (IGT) has announced that its wholly-owned subsidiary IGT Lottery S.p.A. has signed an agreement to sell its Italian payment business to PostePay S.p.A - Patrimonio Destinato IMEL for €700 million.
According to the terms of the agreement, IGT is to sell LIS Holding S.p.A and indirectly, LISPAY S.p.A. They are both wholly-owned subsidiaries and constitute IGT’s proximity payment business. It has been the leader in the Italian proximity payment markets providing services through an advanced payment technology platform and a network of 54,000 points of sale. The services provided range from payments services such as bill payments to prepaid cards to commercial services providing telco and e-vouchers top-up and more.
This transaction provides us with an opportunity to monetize IGT's market leadership in the Italian proximity payment business at an attractive value as we continue to execute our long-term strategy. Streamlining our products and solutions portfolio enables us to focus our efforts and resources on our core and strategic assets, as we position IGT for industry leadership and increased shareholder value.
The €700 million price represents roughly €70 million of net unrestricted cash and an enterprise value of €630 million. In 2021, the Italian payment business had roughly €228 million in gross revenues and €40 million in EBITDA. The proceeds from the sale will primarily be used by IGT to reduce debt.
The sale has already been approved by IGT’s Board of Directors, and it will now be subject to the usual closing conditions and regulatory approvals by CONSOB. It is expected that the deal will be complete in Q3 this year.
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