GTECH is buying U.S. slot-machine maker IGT for $4.7 billion in cash and stock. A bold price which would cut GTECH’s reliance on Italy - and also bring down its tax bills, says Breakingviews.
If I didn't lock brakes on G tech hits snapping up US slot machine make ID eighteen hits until about a deal Clinton -- from breaking views. And ten huge deal. Five billion. GT is. -- Well by the standards of the gaming industry it is quite pricey I think that paying something like eight point seven times. He had that dark the company that requiring -- one of the last. Big deals in this sector involving umpire called scientific. Was done a bit more like six times. And while these numbers they sound like -- Multiples compared to the wider world. Actually US gaming is rather compressed news. To people who place slot machines it's kind of aging demographic this Carlos competition. And IGT itself doesn't mean basic wealth so I would say there is -- a lot for the quarry to prevent. And exactly what I'm about to get to one of the potential senate she's given as you say IGT. Is and it's got to. An aging demographic can and it's a very very competitive market how is she take into squeeze profits out of this deal. I guess the other issue as well as they do slightly different things today Italian company as big in altering machines used to -- -- -- -- particular runs Italian. -- -- plans the American companies big and slot machines which are in Vegas casinos and so on tape slightly different markets but actually. G tech says they have found 218 million dollars a year in savings and new sales they can make but looks very aggressive compared to where. Analysts were estimating before they first admitted it's a month or so ago that that would potentially be a deal between two companies. Another time -- was estimates and since she's a fraction of this figure. -- seeds -- Clinton that he newly formed company will be based in the UK eight. How much is this down to tax -- fashion. Well I can't quite get the -- -- -- this yet but yes you have. And -- company which is losing its Italian stock market listing by the way you have a US company. They maintain in New York Stock Exchange this thing. And yet they creates a new holding company in person. To sun. -- the whole thing. One Husted the -- there are some sort of tax. Benefit that will perhaps they phase if they. Structured the deal through either the US or its lead they wouldn't has some sort of big tax bill. As we've seen recently a whole load of deals have been done. With kind of a large tax component he's been. Inventions by US companies may have overseas this isn't quite an ambition but this certainly is at least one mind being kept on the tax implications. Thank you very much we have to leave -- that Clinton web from breaking these talking about G tech's pat says I GT. We all agenda assessing financial in size and watch the US breaking the show at every day. At twelve that he Easton seventeen currency BST I'm I'm sitting along this is what is.