Brightstar Lottery completes IGT Gaming sale, declares special dividend and buyback

Published 29/07/2025, 13:08
Brightstar Lottery completes IGT Gaming sale, declares special dividend and buyback

Brightstar Lottery PLC (NYSE:BRSL) has completed the sale of its IGT Gaming business to a holding company owned by funds managed by Apollo Global Management (NYSE:APO), a prominent financial services player with an $85 billion market capitalization. According to InvestingPro data, Apollo maintains a "GREAT" financial health score of 3.03, with liquid assets exceeding short-term obligations. The all-cash transaction, announced last year, closed on July 1, 2025, and is expected to yield proceeds of approximately $4.1 billion to $4.2 billion, subject to post-closing adjustments.

Of the proceeds, Brightstar Lottery allocated $2.0 billion to contractual debt reductions, $1.1 billion to shareholder returns, $500 million for upcoming Italy Lotto license payments, and $400 million for general corporate purposes. Shareholder returns include a special cash dividend of $3.00 per share, totaling about $609 million, paid on July 29, 2025, and a new $500 million two-year share repurchase program. The board also declared a quarterly cash dividend of $0.20 per share, payable August 26, 2025. Apollo, the acquiring company, has demonstrated strong shareholder focus with 15 consecutive years of dividend payments and currently trades at $148.70 per share with a beta of 1.57, indicating higher market volatility.

The company reported total revenue from continuing operations of $631 million for the quarter ended June 30, 2025, up from $613 million in the prior year period. Service revenue was $588 million, with product sales contributing $42 million. Operating income from continuing operations was $139 million, down from $179 million in the same quarter last year. Net loss attributable to Brightstar Lottery from continuing operations was $58 million for the quarter, compared to net income of $42 million a year ago.

Income from discontinued operations, reflecting the performance of IGT Gaming prior to the sale, was $40 million for the quarter. Net cash provided by operating activities from continuing operations was $433 million for the six months ended June 30, 2025, compared to $315 million in the same period last year.

On July 16, 2025, Brightstar Lottery, as lead of the LottoItalia consortium, was awarded the Italy Lotto License, effective December 1, 2025, for a nine-year term. The first €500 million installment was paid on July 17, 2025.

As of June 30, 2025, the company reported liquidity of $2.9 billion, including $1.3 billion in cash and cash equivalents and $1.6 billion in undrawn credit facilities.

The company noted that the special and quarterly dividends paid in 2025 are expected to be treated as a nontaxable return of capital for U.S. shareholders, based on current estimates.

This article is based on information provided in a SEC filing.

In other recent news, ADT Inc. announced a secondary public offering of 71 million shares held by Apollo Global Management affiliates. This offering is expected to close on July 28, 2025, allowing Apollo to reduce its stake in ADT. The company will not receive any proceeds from this sale, as it is not directly offering any shares. Meanwhile, Apollo Global Management is reportedly in talks to acquire a significant stake in Spanish football club Atletico Madrid, with the club valued at approximately €2.5 billion ($2.7 billion).

In leadership changes, Apollo has appointed Brian Chu as Partner and Head of Apollo Portfolio Performance Solutions, while Kristiane Kinahan has been named Chief Accounting Officer. Piper Sandler has reiterated an Overweight rating on Apollo Global Management, though it has reduced its earnings per share estimates due to ongoing fee and spread challenges. These developments highlight recent strategic moves and leadership changes at Apollo Global Management.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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