The leading gaming, hospitality and entertainment company, Bally's Corporation, announced that it has completed the sale of Bally's International Interactive to Intralot S.A.
The multi-billion-dollar deal unlocked significant liquidity for the former while positioning the latter on the path to expansion in a market that is expected to reach €200bn ($173bn) globally by 2029.
Bally's Corporation unlocks significant liquidity with the completion of the deal
The total value of the transaction, as explained in a statement released by Bally's Corporation, is the mind-blowing sum of €2.7bn ($3.1bn).
The total acquisition consideration breaks down to €1.136bn ($1.9bn) of newly issued shares to Bally's in new Intralot, as well as €1.530bn ($1.8bn) of cash paid by Intralot to Bally's.
Robeson Reeves, Bally's CEO, spoke with excitement about the completion of the landmark acquisition.
"This is a milestone transaction for Bally’s. We have unlocked significant liquidity in a key asset while establishing an even stronger platform for digital growth," he said.
Moreover, Reeves pointed out: "Our shareholders now have visibility into the value of our interactive division as part of a larger, globally scaled operator."
Finally, the executive pointed out: "Intralot’s lottery expertise and reach, combined with Bally’s International Interactive’s proven digital capabilities, creates a powerful foundation for expansion over the long term."
The sale positions Bally's as a major stakeholder in Intralot with a 58% stake
Per the conditions of the sale of Bally's interactive business, Bally's International Interactive will keep its current leadership and technology stack, as well as digital capabilities.
Notably, by joining forces with Intralot, the new entity is expected to significantly expand its presence and capitalize market that is expected to grow exponentially in the next few years.
Besides the sale of its interactive business, Bally's gains significant ground in Intralot, designating it as a majority shareholder with 58% ownership.
Per the alliance, the two companies are expected to benefit from newly created synergies, cross-selling, as well as growth opportunities.
According to Bally's, $1.0bn of the cash after-tax proceeds from the sale would be used for debt reduction.
In combination with the planned sale and leaseback of Bally's Twin River Lincoln Casino Resort, the company is expected to substantially reduce its debt.
