IGT to sell Italian proximity payment business to focus on core assets

IGT to sell Italian proximity payment business to focus on core assets

It has been announced today that International Game Technology – IGT – is to sell its Italian proximity payment business to focus on core and strategic assets.

According to reports, the firms wholly owned subsidiary has signed an agreement to sell the business to PostePay S.p.A for a figure in the region of €700 million.

A proximity payment is typically a mobile payment that takes place between two devices, usually through advanced contactless technology such as NFC or Bluetooth.

As part of the deal, IGT will sell LIS Holding S.p.A. and LISPAY S.p.A, both of which are involved in the firms proximity payment business in Italy.

The company is a market leader in the Italian proximity payments market and provides its services through a proprietary advanced payment technology platform.

In addition to the platform, the agreement will also involve 54k points of sale stations, whereby the combination of hardware and software processes payments including bill payments and prepaid payment cards, along with telco and e-voucher top ups.

Reportedly, the transaction is the ideal opportunity for the gaming company to monetise the business and provide growth opportunities as part of IGT’s long-term strategy.

Additionally, the sale is being used to streamline the providers products and solutions and focus on core and strategic assets.

Furthermore, as part of IGT’s strategy, this move is being made to position the firm for ‘industry leadership’ and increased shareholder value.

In light of the sale, which is made up of €630 million enterprise value plus €70 million net unrestricted cash, the proceeds are to be used to reduce debt.

Vince Sadusky of IGT commented on the firms sale and why the transaction was made:

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.

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