IGT Will Sell DoubleDown to DoubleU Games
IGT (International Game Technology), a well-known American gambling solutions provider based in Las Vegas, announced that it will be selling its Double Down Interactive online casino operations to DoubleU Games Co, a South Korean social gaming operator based in Seoul. The announcement came after the $825 million deal agreement was reached.
DoubleDown was purchased by IGT back in 2012 for $500 million. This new deal represents a return of $325 million on IGT's initial investment, which is good for the company as it hopes to use the proceeds from the sale to lower its long-term debt that was previously reported to be over $7 billion.
According to IGT Chief Executive Marco Sala, since the company acquired DoubleDown in 2012, it has evolved it into one of the biggest and most successful brands in North America's social casino market.
The terms that have been hammered out for the new deal will see IGT and DoubleU Games enter into a game development and distribution agreement. This agreement will allow DoubleU Games to offer IGT's casino games on its social casino platforms in exchange for it paying ongoing royalties to the American casino games manufacturer.
"This transaction represents a unique and value-accretive partnership combining the operational excellence of DoubleU Games with IGT's world-class slot content," said DoubleU Games Chief Executive Ga-Ram-Kim. “With this partnership, we are excited and confident about DoubleU Games' future as a global leader in social casino,” the executive added.
The sale has not yet been finalized but the hope is that it will conclude prior to the end of Q2 2017.