Reno remains manufacturing hub; Vegas corporate headquarters
Leading slot manufacturer International Game Technology and lottery and gaming giant GTECH S.p.A. closed their much-anticipated merger last week, to the applause of Wall Street as the chairman of the newly merged company, International Game Technology Plc., rang the bell at the New York Stock Exchange.
The acquisition of IGT by Italy-based GTECH creates one of the two new powerhouses of the gaming supply sector. GTECH, a leading supplier and operator of lotteries and VLTs in Italy, had already absorbed successful slot companies Atronic and Spielo International. Adding the world’s largest slot company affords a counterbalance to Scientific Games, GTECH’s traditional lottery industry rival that recently absorbed two other top-five slot companies, Bally Technologies and WMS Industries.
The merger became effective at 12:01 a.m. on April 7. International Game Technology Plc. began trading last week on the New York Stock Exchange under the ticker symbol IGT.
“IGT is uniquely positioned to serve global commercial and government clients with innovative content, cutting-edge technology, and a suite of products that delivers exciting gaming experiences through every channel, including lotteries, gaming machines, social, mobile, and interactive,” said a statement from the company.
“IGT is now positioned No. 1 both in lottery and gaming machines. IGT’s customer base presents a powerful growth opportunity for the two highly complementary legacy businesses. IGT is the preferred gaming and lottery partner in more than 100 countries around the world with combined revenues of approximately $6 billion.”
GTECH will be rebranded as IGT. The GTECH name will eventually disappear. As part of the sign changeover, the letters “IGT” will replace the blue “GTECH” letters at the top of the 13-story tower above GTECH’s current Rome and Providence, Rhode Island headquarters locations.
Rome and Providence will become operating headquarters of the merged company, with worldwide corporate headquarters to be located in Las Vegas. IGT’s Reno facility will be the main manufacturing plant of the combined company. Providence will serve as North American headquarters for the lottery and gaming business units.
Marco Sala, a longtime GTECH executive, is CEO of the newly merged IGT. Former IGT Chairman Phil Satre is chairman of the board of the new company, with former IGT CEO Patti Hart as vice chairman.
“Regulated gaming clients across both the government and private sectors are seeking reliable, secure and innovative ways to increase revenue and drive profitability, and IGT is the trusted go-to partner in this space,” said Sala in a statement. “We will provide top-performing content across multiple platforms, enabling players to experience their favorite games across all regulated segments and channels, all with our unwavering customer-first approach.”
“We are pleased to welcome IGT to the NYSE,” said Thomas W. Farley, group president of the New York Stock Exchange, before Sala rang the opening bell April 7. “IGT is a premier global gaming operator shaping the future of entertainment and gaming, and an excellent addition to the NYSE’s community of the world’s leading companies.”
In addition to Sala, the corporate leadership team will include Renato Ascoli, chief executive officer, North America Gaming/Interactive; Walter Bugno, CEO, international; Fabio Cairoli, CEO, Italy; Michael Chambrello, CEO, North America lottery; Alberto Fornaro, executive vice president and chief financial officer; Donald R. Sweitzer, chairman, IGT Corp. (North America) and senior public affairs adviser; and Robert Vincent, senior vice president, human resources and corporate communications.
Wall Street reacted enthusiastically to the newly merged company. Shares on the first trading day rose 13.6 percent to $20.08 per share.
The company also unveiled a new logo April 7. The merged company is the world’s top gaming machine manufacturer and top lottery contractor in traditional lottery sales, instant tickets, scratch tickets and video lottery terminals in 41 U.S. states and more than 100 countries worldwide.
Sala told the Reno Gazette-Journal, in the city that remains IGT’ manufacturing hub, that the company will maintain production in Reno and R&D in Reno and Las Vegas, and will increase its investment in R&D over the next 24 months.
“We’ll take advantage of the content library we have acquired and offer it across all platforms, slot machines, our lotteries, social media, mobile and interactive,” he said. “Reno is going to be our manufacturing harbor for the gaming part of our business. We’ll continue to invest in gaming. We’ll use Reno and, of course, Las Vegas as well for developing those platforms.”
