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Wednesday, July 16, 2014

Italy's GTECH to purchase Vegas slot machine maker IGT for $4.7 bln, (NYSE: IGT)

Italy's GTECH will purchase U.S. slot machine maker International Game Technology for $4.7 billion, shifting the lottery operator away from its struggling domestic market and making it a major player in the casino business.The purchase of Las Vegas-based IGT is the largest foreign acquisition by an Italian company since 2009, excluding Fiat's takeover of Chrysler which took place in several stages.The deal, which will create a group with annual revenues of more than $6 billion, bucks a trend of Italian businesses 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 it, GTECH - the world's No.1 lottery operator - will also strengthen its foothold in the growing U.S. gaming market.

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 traded higher by 8.39% or $1.3/share to $16.80. 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 28940828.