Casino software developer giant International Game Technology (IGT) has announced that it has purchased social gaming company DoubleDown Interactive for $500 million.
A spokesperson for IGT said that the acquisition of DoubleDown will provide the company with instant size and scale inside the world of social media casino gaming.
"This powerful distribution model is anticipated to provide IGT an opportunity to entertain players with consistent, ubiquitous, thrilling gaming experiences across multiple platforms." the spokesman said.
IGT reportedly paid $250 million in cash, $85 million in retention payments over two years, and up to $165 million in cash over the next three years if DoubleDown meets financial performance goals. The acquisition will be completed using cash on hand and is expecting to be finalized by the end of the second quarter of IGT's current fiscal year.
DoubleDown CEO Greg Enell said "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."
IGT CEO Patti Hill also commented, saying "As technological innovations increasingly influence consumer behavior, social dynamics are quickly transforming entertainment and gaming experiences everywhere."
“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."