Italy-based lottery company GTECH SpA has launched preliminary talks to acquire International Game Technology, the Las Vegas firm that is the leading maker of slot machines.
GTECH, which run's Italy's state lottery, on Monday said it is "engaged in preliminary, exploratory discussions" on the potential deal and has hired financial advisers to assist with the transaction.
The company said it does not anticipate a capital increase and potentially expects to use a mix of cash and equity to fund the potential deal. However, there's no assurance the transaction will be completed, GTECH said.
International Game Technology on Monday said its board of directors and senior management "are currently engaged" in a potential business combination but similarly cautioned that no decisions have been made and "there can be no assurances" of a final agreement.
The announcements came three days after Reuters reported that GTECH and Ronald Perelman's MacAndrews & Forbes holding company were among several potential business suitors for IGT. Buyout firm Carlyle Group and private equity firm Apollo Global Management also submitted preliminary bids, Reuters reported.