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Wednesday, July 16, 2014

Italy's GTECH to purchase U.S. slot machine maker IGT in $6.4 billion deal, (NYSE: IGT)

Italy's GTECH will purchase U.S. slot machine maker International Game Technology for $6.4 billion including debt, shifting the lottery operator's centre of gravity away from its struggling domestic market.The acquisition of Las Vegas-based IGT is the largest foreign acquisition by an Italian company this year and defies a trend of firms in Italy falling prey to overseas suitors as the local economy stagnates.IGT makes popular slot machines bearing brands such as that of TV show "Wheel of Fortune" and science fiction film "Avatar". By buying the firm, GTECH - the world's No.1 lottery operator - will become a major global player in the casino business and strengthen its foothold in the growing U.S. gaming market.The comparison between the Italian and U.S. sectors is stark: Total net spending for gaming in Italy fell 6.6 percent last year, while it rose 6.7 percent in the United States - above the average global growth rate of 4.2 percent.

International Game Technology (IGT) is a global gaming company specializing in the design, development, manufacture, and marketing of casino-style gaming equipment, systems technology, and game content across multiple platforms: land-based, online real-money and social gaming. Shares of IGT remained unchanged at $15.50. In the past year, the shares have traded as low as $12.14 and as high as $21.20. On average, 6654640 shares of IGT exchange hands on a given day and today's volume is recorded at 5613343.