Apollo Global Management continues its expansion in the gaming sector. The New York private equity giant acquires Everi Holdings and the gaming and slot machine business from International Game Technology (IGT) in a deal worth approximately $6.3 billion.

This deal replaces an earlier agreement in which IGT planned to spin off its gaming division and merge with Everi to create a company with an annual revenue of approximately $2.7 billion.

Under the new transaction announced on Friday, Everi shareholders will receive $14.25 per share in cash, representing a 56% premium on the last closing price. IGT will receive $4.05 billion in gross proceeds for its IGT gaming business.

The takeover unites a broad portfolio of assets in the areas of gaming, online betting, and sports betting under the control of Apollo, which has delved deeper into the gaming market through numerous acquisitions in recent years.

The news about the new deal triggered a rally in IGT and Everi shares, which rose by about 16% and 42% respectively in pre-market trading. By Thursday's close, IGT shares had fallen 26% this year, while Everi shares had declined 19%.

IGT, known for its slot machines and lotteries, stated that a significant portion of the cash from the deal with Apollo will flow back to shareholders and be used for debt reduction. Focusing on a pure lottery business, the company plans to change its name but will remain publicly traded.

After the completion of the deal, Everi will be delisted from the New York Stock Exchange. The transaction with Apollo was approved by a special committee of IGT directors and all members of the Everi board. De Agostini, the majority shareholder of IGT, has committed to taking a minority stake in the combined company upon the deal's completion with Apollo.

Everi's President and CEO, Randy Taylor, stated that the combined business would be better positioned to take advantage of growth opportunities under private leadership. He added that Apollo is a respected investment firm with a strong track record in the gaming industry.

The newly established company will have its headquarters in Las Vegas. IGT CEO Vince Sadusky will oversee the spin-off of IGT Gaming and will continue to lead the lottery-focused company after the deal is completed. The current Executive Vice President for Strategy and Corporate Development at IGT, Fabio Celadon, will serve as CFO, and Everi's Chief Financial Officer, Mark Labay, will function as Chief Integration Officer of the combined company.

The conclusion of the deal is expected in the third quarter of next year.

Apollo has taken several steps in the casino industry in recent years, including a smaller deal worth around 240 million USD to purchase the slot machine manufacturer American Gaming Systems, the acquisition of the Venetian Resort Las Vegas and Venetian Expo in Las Vegas for around 2.25 billion USD, as well as the takeover of Harrah's Entertainment in 2008 together with TPG.