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Igt Buys DoubleDown Interactive for $500 million

Social gaming casino company DoubleDown acquired for $500 million
US land games and machine developer International Game Technology has followed its purchase of the Entraction network with another internet gaming acquisition, inking an agreement to buy social gaming company DoubleDown Interactive for $500 million.
Founded in April 2010, DoubleDown developed the popular DoubleDown Casino which has proved popular among millions of Facebook users as one of the top 4 social media games in 2011.
According to, DoubleDown Casino currently has 4.7 million monthly active users, up from 3.3 million in October 2011. With a broad and expanding portfolio, Double Down offers blackjack, slots, slot tournaments, video poker, and roulette to social gamers around the world.
The total consideration includes $250 million in cash, $85 million in retention payments over the next two years and up to $165 million in cash, payable over the next three years subject to Double Down meeting certain financial performance targets.  IGT expects to fund the transaction from cash on hand.
IGT spokesmen said this week that the addition of Double Down provides IGT instant size and scale in the fast growing world of casino-style social gaming and is expected to broaden the company's popular gaming titles beyond the physical casino to Facebook, the world's largest social network with over 800 million global users.
"This powerful distribution model is anticipated to provide IGT an opportunity to entertain players with consistent, ubiquitous, thrilling gaming experiences across multiple platforms," they said.
Greg Enell, chief executive of DoubleDown commented: "Double Down and IGT share complementary cultures focused on innovation and creativity.  Both companies are committed to providing unrivaled quality, service and entertainment to millions of players. Leveraging IGT's Research and Development, global reach, and best-in-class content will provide our player base with an even more robust experience and is expected to augment Double Down's growth trajectory."
"As technological innovations increasingly influence consumer behavior, social dynamics are quickly transforming entertainment and gaming experiences everywhere," said Patti Hart, CEO of IGT.
“The addition of Double Down launches IGT into a leadership position in social gaming, extends our global reach through new mediums and leverages our unmatched expertise in game development. We intend to drive meaningful value from this rapidly growing distribution platform that reaches a new but complementary demographic of gamers."
The transaction is projected to close within the second quarter of IGT's current fiscal year.
Enell will continue to lead Double Down and the company's operations will remain in Seattle after the acquisition is complete, IGT has confirmed, stressing that it will allow the company an appropriate level of independence in order to foster its continued exceptional growth.

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