Brightstar Lottery Completes Sale of Gaming & Digital Business and Announces $1.1 billion Capital Return to Shareholders

Rhea-AI Summary

Brightstar Lottery (NYSE:IGT) has completed the sale of its Gaming & Digital business to Apollo Global Management for approximately $4.0 billion in net cash proceeds. The company will begin trading under the new ticker symbol BRSL on July 2, 2025.

The proceeds will be allocated across several initiatives: $2.0 billion for debt reduction focusing on near-term maturities, $1.1 billion for shareholder returns (including a $3.00 per share special dividend and a $500 million share repurchase program), $500 million for Italy Lotto license payments, and $400 million for general corporate purposes.

The special dividend will be payable on July 29, 2025, to shareholders of record as of July 14, 2025. The company aims to maintain a strong balance sheet with a target net debt leverage around 3.0x, with pro forma net debt leverage of 3.5x as of March 31, 2025.

Positive

• Substantial $4.0 billion cash proceeds from Gaming & Digital business sale
• Significant $1.1 billion capital return to shareholders through special dividend and buyback
• Major $2.0 billion debt reduction focusing on near-term maturities
• Strong target net debt leverage around 3.0x supported by robust cash flow generation

Negative

• Pro forma net debt leverage of 3.5x remains above target level of 3.0x
• Significant $500 million funding requirement for upcoming Italy Lotto license payments

Insights

Corporate Finance Specialist

Brightstar's $4B sale enables $1.1B shareholder returns, $2B debt reduction, improves financial flexibility while maintaining sustainable 3.5x leverage.

Brightstar Lottery (formerly IGT) has completed a transformative $4 billion sale of its Gaming & Digital business to Apollo Global Management, strategically repositioning itself as a pure-play lottery company. The transaction proceeds are being allocated with remarkable balance across three key priorities: debt reduction, shareholder returns, and operational needs.

The $2 billion debt reduction is particularly significant, focusing on near-term maturities including the complete redemption of notes due in 2026 and partial prepayment of facilities due in 2027. This prudent liability management extends the company's debt maturity profile while reducing interest expenses, strengthening Brightstar's financial foundation.

The $1.1 billion capital return package represents substantial immediate value for shareholders, comprising a $3.00 per share special dividend and a new $500 million share repurchase authorization over two years. The dividend will be distributed on July 29 to shareholders of record as of July 14, providing a meaningful cash return.

The company's financial strategy post-transaction demonstrates impressive discipline, targeting a sustainable net debt leverage ratio of approximately 3.0x. Even after accounting for the shareholder returns, $500 million for Italy Lotto license payments, and residual transaction costs, the pro forma leverage sits at a manageable 3.5%.

This transaction transforms Brightstar into a more focused entity with predictable cash flows from lottery operations, while providing financial flexibility for future growth initiatives. The balanced capital allocation strategy signals management's commitment to balancing debt management, shareholder returns, and operational investments – a positive indication of disciplined financial stewardship.

• The Company will remain listed on the New York Stock Exchange, trading under its new ticker symbol, BRSL, beginning July 2, 2025
• $1.1 billion capital return to shareholders comprised of $3.00 per share special cash dividend and $500 million share repurchase authorization
• $2.0 billion in debt reduction concentrated on near-term maturities

LONDON, July 1, 2025 /PRNewswire/ -- International Game Technology PLC (NYSE: IGT), doing business as Brightstar Lottery ("Brightstar," the "Company"), announced it has completed the sale of its Gaming & Digital business to a holding company owned by funds managed by affiliates of Apollo Global Management, Inc. (NYSE: APO) on July 1, 2025. Effective July 2, 2025, Brightstar will begin trading on the New York Stock Exchange under its business name, Brightstar Lottery, and new ticker symbol, BRSL. The Company's CUSIP will not change, and no action is needed from current stockholders.

"The sale of the Gaming & Digital business positions Brightstar for an exciting future," said Marco Sala, Executive Chair of Brightstar. "The balanced allocation of proceeds to significantly reduce debt and return substantial capital to shareholders, in addition to funding investments in growth and improving ongoing shareholder returns, reflect the Board's continuing commitment to enhance shareholder value."

"Today marks an exciting new chapter for the Company, one that builds on a long legacy of delivering responsible, sustainable solutions through our products, services, technology, and insights," said Vince Sadusky, CEO of Brightstar. "I am extremely proud of the Brightstar team, whose future-forward mindset and commitment to innovation serving lottery customers around the world are the foundation of the Company's strong financial position and predictable cash flows."

The Company received approximately $4.0 billion of net cash proceeds that are expected to be allocated in the following manner: 

• $2.0 billion used for previously disclosed contractual commitment to reduce debt:
  • Redeem in whole the 4.125% Senior Secured U.S. Dollar Notes due April 2026 and the 3.500% Senior Secured Euro Notes due June 2026.
  • €300 million to prepay the Term Loan Facilities due January 2027.
  • Remaining amount allocated to prepay the Revolving Credit Facilities due July 2027.
• $1.1 billion to be returned to shareholders:
  • The Company's Board of Directors declared a special cash dividend to common stockholders in the amount of $3.00 per share. The record date of the distribution is July 14, 2025, and it will be payable on July 29, 2025.
  • In addition, the Board authorized a $500 million, two-year share repurchase program. The new authorization replaces the Company's existing share repurchase program.
• $500 million to partially fund upcoming Italy Lotto license payments.
• $400 million to be used for general corporate purposes.

The Company intends to maintain a strong balance sheet with target net debt leverage (net debt/last twelve months ("LTM") Adjusted EBITDA)¹ around 3.0x supported by robust cash flow generation. Pro forma for the transaction, approximately $100 million of residual post-closing transaction costs, the full upfront payments associated with the new Italy Lotto license, and the $1.1 billion of capital returned to shareholders, net debt leverage as of March 31, 2025, was 3.5x.    

¹ Net debt, net debt leverage, Adjusted EBITDA and pro forma net debt are non-GAAP financial measures. For definitions of net debt, net debt leverage, and reconciliations of net debt and adjusted EBITDA, respectively, to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP, as of March 31, 2025, refer to the Company's earnings release dated May 13, 2025, furnished to the Securities and Exchange Commission on Form 6-K on May 13, 2025.

About Brightstar 

Brightstar is an innovative, forward-thinking global leader in lottery that builds on our renowned expertise in delivering secure technology and producing reliable, comprehensive solutions for our customers. As a premier pure play global lottery company, our best-in-class lottery operations, retail and digital solutions, and award-winning lottery games enable our customers to achieve their goals, fulfill player needs and distribute meaningful benefits to communities. Brightstar has a well-established local presence and is a trusted partner to governments and regulators around the world, creating value by adhering to the highest standards of service, integrity, and responsibility. Brightstar has approximately 6,000 employees. For more information, please visit www.brightstarlottery.com. 

Cautionary Statement Regarding Forward-Looking Statements 

This news release may contain forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning International Game Technology PLC and its consolidated subsidiaries (the "Company") and other matters. These statements may discuss goals, intentions, and expectations as to future plans and strategies, expected growth, trends, events, including the amount and allocation of net proceeds from the sale of the Gaming & Digital business, the Company's future financial position and cash flows, future dividend payments, target net debt leverage, and  results of operations and financial condition, including our expectations on future revenue and profit potential, based on current beliefs of the management of the Company as well as assumptions made by, and information currently available to, such management. Forward-looking statements may be accompanied by words such as "aim," "anticipate," "believe," "plan," "could," "would," "should," "shall," "continue," "estimate," "expect," "forecast," "future," "guidance," "intend," "may," "will," "possible," "potential," "predict," "project" or the negative or other variations of them. These forward-looking statements speak only as of the date on which such statements are made and are subject to various risks and uncertainties, many of which are outside the Company's control. Should one or more of these risks or uncertainties materialize, or should any of the underlying assumptions prove incorrect, actual results may differ materially from those predicted in the forward-looking statements and from past results, performance, or achievements. Therefore, you should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include (but are not limited to) macroeconomic, regulatory and political uncertainty, including as a result of new or increased tariffs, trade wars, and other restrictions on trade between or among countries in which the Company operates, and related changes in discretionary consumer spending and behavior, fluctuations in foreign currency exchange rates, and the other factors and risks described in the Company's annual report on Form 20-F for the financial year ended December 31, 2024 and other documents filed or furnished from time to time with the SEC, which are available on the SEC's website at www.sec.gov and on the investor relations section of the Company's website at www.brightstarlottery.com. Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements. You should carefully consider these factors and other risks and uncertainties that may affect the Company's business. All forward-looking statements contained in this news release are qualified in their entirety by this cautionary statement. All subsequent written or oral forward-looking statements attributable to the Company, or persons acting on its behalf, are expressly qualified in their entirety by this cautionary statement. 

Contact: 

Mike DeAngelis, Corporate Communications, +1 (401) 392-1000, mike.deangelis@brightstarlottery.com 

Matteo Selva, Italian media inquiries, +39 366 6803635 

James Hurley, Investor Relations, +1 (401) 392-7190 

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SOURCE International Game Technology PLC

FAQ

What is the amount of Brightstar Lottery's (IGT) special dividend and when will it be paid?

Brightstar announced a $3.00 per share special cash dividend, payable on July 29, 2025, to shareholders of record as of July 14, 2025.

How much did Brightstar Lottery (IGT) receive from the sale of its Gaming & Digital business?

Brightstar received approximately $4.0 billion in net cash proceeds from the sale of its Gaming & Digital business to Apollo Global Management.

What is Brightstar Lottery's new stock symbol and when will it change?

Brightstar Lottery will change its ticker symbol from IGT to BRSL on the New York Stock Exchange, effective July 2, 2025.

How will Brightstar Lottery use the proceeds from the Gaming & Digital business sale?

The proceeds will be used for: $2.0 billion for debt reduction, $1.1 billion for shareholder returns, $500 million for Italy Lotto license payments, and $400 million for general corporate purposes.

What is Brightstar Lottery's share repurchase program amount and duration?

Brightstar's Board authorized a $500 million share repurchase program with a two-year duration, replacing the company's existing program.