Bally's Corporation announced the completion of a groundbreaking deal with Greek gaming technology company Intralot SA, selling its international interactive business to Intralot for 2.7 billion euros. Through this transaction, Bally's acquired 873,707,073 newly issued shares of Intralot, holding a total of 58% of the shares, becoming the controlling shareholder. The payment method for the transaction includes 1.53 billion euros in cash and 1.136 billion euros in equity consideration, providing Bally's with sufficient liquidity to reduce secured debt and advance projects such as the Chicago casino. The merged entity is expected to have annual revenues exceeding 1.1 billion euros and an EBITDA profit margin of over 39%, combining Bally's digital technology with Intralot's lottery infrastructure to create a leading global iGaming platform.
Transaction Overview and Completion
Bally's Corporation has completed a strategic transaction with Intralot SA, with a total value of 2.7 billion euros. The transaction involves Bally's selling its international interactive business to the Greek gaming technology company Intralot, while acquiring a controlling stake in the latter.
After the completion of the transaction, Bally's holds 58% of Intralot's shares, becoming the controlling shareholder of this Athens Stock Exchange-listed company, marking the beginning of a deep integration phase between the two companies.
Transaction Structure and Financial Arrangements
The transaction uses a mixed payment method of cash and equity, with Intralot paying 1.53 billion euros in cash, while issuing shares worth 1.136 billion euros to Bally's. This payment structure provides Bally's with immediate liquidity and long-term equity value.
Through this transaction, Bally's acquired 873,707,073 newly issued shares, along with its existing holdings, reaching an absolute controlling level, ensuring a dominant position in the merged company.
Liquidity Enhancement and Debt Management
The cash flow generated by the transaction will significantly enhance Bally's financial condition. The company plans to use at least 1 billion US dollars in cash proceeds to reduce secured debt, including repaying the outstanding balance of revolving credit facilities.
In addition, Bally's will use the 500 million US dollars obtained from the sale-leaseback transaction of Twin River Lincoln Casino Resort to further reduce debt, ensuring financial stability during expansion.
Strategic Synergy and Business Integration
The transaction combines Bally's mature digital gaming technology with Intralot's extensive lottery infrastructure, creating strong synergies. The merged entity will integrate the product and service capabilities of both parties in B2G, B2B, and B2C channels.
This combination is expected to bring cross-market opportunities, enhance product diversification, and provide more comprehensive solutions for the global iGaming and lottery markets.
Management Statements and Strategic Vision
Bally's CEO Robeson Reeves stated, "This is a milestone transaction for Bally's. Not only have we released significant liquidity from key assets, but we have also established a stronger digital growth platform. Shareholders can now clearly see the value of our interactive division."
Intralot Chairman Sokratis Kokkalis called the merger a "historic milestone," emphasizing that the merged company will be listed on the Athens Stock Exchange and gain strong investor confidence.
Financial Expectations and Market Opportunities
The newly merged entity is expected to generate annual revenues exceeding 1.1 billion euros, with an EBITDA profit margin of over 39%. This financial performance will make it a significant player in the global iGaming market.
The company expects the global market size to reach 200 billion euros by 2029, and this merger will help both parties better seize this growth opportunity, creating new cross-selling opportunities.
Operational Optimization and Technology Integration
Bally's International Interactive will continue to maintain its technological leadership, operating with a mature tech stack and digital capabilities. Integration will improve operational efficiency and use data-driven innovation to expand the market.
The merged entity will focus on enhancing product capabilities and market penetration, strengthening its leadership in the digital gaming industry.
Global Impact and Industry Position
Through this transaction, Intralot and Bally's will jointly become global leaders in online gaming and lottery operations. The complementary product lines and expertise of both parties will create a strong market competitive advantage.
The combination of Intralot's expertise in the lottery sector and Bally's expansion in interactive gaming will form a strong competitive force within the industry.
Funds Usage and Project Investment
The funds obtained from the transaction will support Bally's continued advancement of its growth strategy, including investing 940 million US dollars in the development of the Chicago casino project. Sufficient liquidity will enable the company to flexibly accelerate its global expansion plans.
The debt reduction plan will improve the company's financial structure, providing a more robust financial foundation for future investments.
Future Outlook and Development Direction
The merged company plans to use the strengths of both parties to create long-term value, further consolidating its key position in the iGaming field. The company will focus on market penetration and innovation, leading the development of the digital gaming industry.
Investors have shown confidence in the merger prospects, with Intralot's recent issuance of 429 million euros in shares being oversubscribed, reflecting the market's positive expectations for this strategic transaction.
