Private equity behemoth Apollo Global Management (NYSE:APO) is reportedly one of the potential suitors interested in acquiring the global gaming division of International Game Technology (NYSE:IGT), according to a Bloomberg News report released on Wednesday.

The global gaming division of IGT, known for producing slot machines, is speculated to be valued between $4 billion and $5 billion, inclusive of debt, as per individuals acquainted with the matter.

When approached by Reuters for comment, IGT responded, “We are still in the process of exploring strategic alternatives for our Global Gaming and PlayDigital segments and can’t comment on rumors or speculation.” This statement was issued amidst a surge in pre-market trading where IGT’s stock escalated by 6%, following the report hinting at Apollo Global Management (NYSE:APO) as one of the prospective purchasers of the firm’s global gaming division.

IGT Considers Varied Strategic Alternatives to Boost Long-Term Value

Earlier in June, IGT revealed that its Board of Directors is in the midst of scrutinizing potential strategic alternatives for its Global Gaming and PlayDigital segments. This move aims at unleashing the full potential of IGT’s portfolio, with options such as sale, merger, or spin-off on the table, besides the possibility of retaining and augmenting investments in the Global Gaming and PlayDigital sectors.

“Over the last three years, IGT has refined its strategic direction by reorganizing around core product verticals, monetizing non-core assets, decreasing structural costs, and markedly enhancing its credit profile,” Marco Sala, the Executive Chair of IGT, remarked.

He further emphasized the belief that the inherent value of IGT’s industry-leading operations and diverse cash flow portfolio is not aptly mirrored in the current stock price. “The timing is right to assess opportunities that may augment value for IGT’s shareholders,” Sala added.

Vince Sadusky, the CEO of IGT, stated, “IGT is a global pioneer with profound expertise in lottery, land-based gaming, iGaming, and sports betting.” He asserted the company’s dedication towards fulfilling its growth objectives and multi-year targets delineated during the Investor Day in November 2021, while undergoing this evaluation of strategic alternatives. Sadusky reassured that irrespective of the results of this examination, IGT is primed to meet its long-term growth and profitability objectives.

To facilitate the exploration of strategic options, IGT has enlisted the services of Deutsche Bank, Macquarie Capital, and Mediobanca as financial advisors. Additionally, law firms Sidley Austin and White & Case have been appointed as legal counsels to assist in the process.

In the first quarter of the current financial year, the two segments under consideration amassed revenues approximating $436 million.