IGT buying Anchor Gaming for $1.365 billion

Sunday, July 8, 2001 | 9:53 a.m.

Slot machine giant International Game Technology of Reno announced Sunday that it's buying competitor Anchor Gaming of Las Vegas for $1.365 billion.

The deal is one of the largest ever in the gaming equipment industry and will create a company with more than $2 billion in annual revenue.

The merger should position IGT to better compete against WMS Gaming, a strong competitor based in Chicago; Japanese competitor Konami Gaming; and Aristocrat Leisure, an Australian newcomer to the U.S. slot machine business that just bought Casino Data Systems of Las Vegas.

Besides making slot and video poker machines, IGT is well known as the operator of Megabucks, the largest multi-casino progressive jackpot game in Nevada.

Anchor brings to the deal popular games like Wheel of Fortune -- with which IGT is a partner -- as well as a slot route and casino management business.

Anchor's lottery subsidiary has been hurting its finances. Anchor took a loss of $94 million or $6.41 per share for the quarter ending March 31 to cover costs to restructure the subsidiary, AWI

The companies, in a statement distributed on PRNewswire, said IGT is buying Anchor with IGT stock and that IGT is assuming $430 million in anchor debt.

Anchor Gaming shareholders will receive one share of IGT common stock for each share of Anchor Gaming.

"No other company offers the depth of talent that IGT and Anchor Gaming will have together, from the executive level to design and manufacturing," said T.J. Matthews, Chairman, President and Chief Executive Officer of Anchor Gaming. "We are looking forward to the many possibilities that the combination presents."

Matthews will stay on with the new company as chief operating officer of IGT and chief executive of Anchor.