IGT selling Double Down casino game unit for $825M

|By:, SA News Editor

International Game Technology (IGT -2.5%) has a definitive deal to sell casino unit Double Down Interactive to an affiliate of South Korea's DoubleU Games for $825M.

The two will pursue a multi-year partnership on "social casino" gaming.

IGT had acquired Double Down in 2012 and "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," says IGT CEO Marco Sala.

It will use proceeds for general purposes including debt reduction; at last report, the company had $7.9B in debt.

The purchase price is about 10.5 times Double Down's 2016 adjusted EBITDA.