IGT Sells DoubleDown Social Casino to South Korean Operator

ian bruce
Written by Ian Bruce
Published on Wednesday 19th April 2017, 11:20 am
Posted in: Casino Business

Casino Business

Gaming solutions provider International Game Technology (IGT) has announced that it has signed a deal to sell its DoubleDown social casino property to DoubleU Games, which is based in Seoul, South Korea. IGT had acquired DoubleDown in 2012 for around $500 million, and the new deal will see DoubleU Games paying a cash purchase price of $825 million, which is more than ten times DoubleDown’s adjusted earnings for 2016.

The deal looks like a good one for both companies. Since purchasing DoubleDown in 2012, IGT has invested a lot of effort into growing it into one of the biggest social casino brands in North America, so selling it at this point enables the company to realise the value of the asset and give its shareholders even more to smile about than usual. For DoubleU Games, acquiring the brand with much of the hard work having been done means that they can focus on maintaining the momentum that has already been established, and continue growing the brand over the coming years.

When the sale of DoubleDown has been finalised, IGT and DoubleU Games will work in partnership so that the latter can continue to offer IGT’s extensive range of games across its social platforms. In return, IGT will receive ongoing royalties, and thereby retain a stake in the social casino market which it has played significant role in developing.

Commenting on the deal, Marco Sala, who is CEO of IGT, 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 maximize 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.’

Ga-Ram Kim, DoubleU Games' CEO, was equally enthusiastic about the deal. ‘This transaction represents a unique and value-accretive partnership combining the operational excellence of DoubleU Games with IGT's world class slot content,’ he said. ‘With this partnership, we are excited and confident about DoubleU Games' future as a global leader in social casino.’

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