As part of the deal, IGT will get $4.7 billion in cash and GTech will absorb $1.7 billion of IGT's existing debt. Furthermore, IGT will get $13.69 per share plus 0.1819 in shares for the new company.
Commenting on the deal GTech CEO Marco Sala said, "With limited overlap in products and customers, the combined company will enjoy leading positions across all segments of the gaming landscape."
IGT CEO Patti Hart added: "This outstanding combination of two global leaders redefines the future of the gaming industry. Together we are uniquely positioned to provide the industry's broadest and most innovative portfolio of best-in-class products, solutions and services."
"This strategic agreement positions us to further transform the industry while providing meaningful benefit and value to our customers, our employees and our shareholders."
Organizationally, the new corporation will see Sala becoming the CEO, with Hart being the firm's Vice Chairman. There will be a total of 13 directors at the new company, which will be represented by executives of both firms.
The deal is expected to be completed in the first half of 2015.