International Game Technology (IGT) has arranged to sell Double Down Interactive LLC social casino subsidiary to a branch of DoubleU Games Co.
By the terms of the deal, social casino operator DoubleU Games with the headquarters in Seoul, South Korea, will acquire the business unit for $825 million. The acquisition will be finished by the end of the second quarter of the current year. The agreement provides for multi-year strategic partnership between IGT and DoubleU Games.
The parties will conclude an additional agreement on games development, distribution and services which will enable DoubleU Games to include casinos from IGT to combined social platforms in exchange for royalty.
Marco Sala, IGT chief executive, said “Since acquiring DoubleDown in 2012, IGT has grown it into one of the largest and most successful brands in the North American social casino market.
“After several years of strong, organic growth and increasingly attractive valuation levels, the time is right for us to maximise the value of this asset for our shareholders.
“We will continue participating in the growth of the social casino market through our multi-year, strategic partnership with DoubleU Games.”
The agreement has already been approved by the directorate of IGT and managing body of DoubleU games. Now, the companies should fulfil customary closing conditions.
Ga-Ram Kim, chief executive of DoubleU Games, noted: “This transaction represents a unique and value-accretive partnership combining the operational excellence of DoubleU Games with IGT's world-class slot content.
“With this partnership, we are excited and confident about DoubleU Games' future as a global leader in social casino.”