Italy's GTECH Buying IGT for $4.7 Billion - KTVN Channel 2 - Reno Tahoe News Weather, Video -

Italy's GTECH Buying IGT for $4.7 Billion

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One of the biggest employers in Northern Nevada is making a big move....overseas. Wednesday, International Game Technology announced a plan to 'merge' with GTECH of Italy. GTECH is a worldwide lottery company. Officials say they plan to combine their assets to create one of the largest overall gaming companies in the world.

"This is a very exciting day for IGT," said CEO Patti Hart. "This will strengthen both companies. It will give us reach into the European market and it will give them assets with gaming."

That is seen as a win for investors. In fact, IGT's stock rose by $18.25 a share on the news. But in reality IGT will cease to be. Once a new holding company is formed, the headquarters will be moved to Great Britain because of its tax-friendly business climate. So the headquarters for IGT, currently located in Las Vegas, will no longer be needed. The manufacturing, however, is expected to continue. Whether that continues in Reno or is moved overseas is a question no one has been able to answer.

GTECH will be 'buying out" IGT for $4.7 billion and will be taking on $1.7 billion in debt on the deal. IGT officials will have a voice on the board of directors but the split is just 20% IGT and 80% GTECH. There's no word on the new name yet.

IGT employs 1,800 people in Reno. They say there has been no official information given from IGT but an employee meeting is planned for Friday.

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