IGT continues to re-position itself ahead of the possible legalisation of online gaming in the US with the acquisition of Double Down Interactive, a leading online social gaming company, for around $500m.
Launched in April 2010, the DoubleDown Casino is the world's largest virtual casino and one of the top four social media games in 2011 as rated by Facebook. According to AppData.com, DoubleDown Casino currently has 4.7 million monthly active users, up from 3.3 million in October 2011. With a broad and expanding portfolio, Double Down offers blackjack, slots, slot tournaments, video poker and roulette to social gamers all around the world.
The total consideration includes $250m in cash, $85m in retention payments over the next two years and up to $165m in cash payable over the next three years subject to Double Down meeting certain financial performance targets.
"As technological innovations increasingly influence consumer behaviour, social dynamics are quickly transforming entertainment and gaming experiences everywhere," said Patti Hart, CEO of IGT. "The addition of Double Down launches IGT into a leadership position in social gaming, extends our global reach through new mediums and leverages our unmatched expertise in game development. We intend to drive meaningful value from this rapidly growing distribution platform that reaches a new, but complementary, demographic of gamers."
