The Italian lottery operator Gtech is buying slot machine maker International Game Technology for $4.7 billion in cash and stock. Including $1.7 billion in debt, the companies on Wednesday valued the deal at $6.4 billion.

Gtech said last month that it was in talks with the Las Vegas company and IGT said at the time that it was weighing its options. IGT stockholders will receive $13.69 in cash plus 0.1819 ordinary shares of the new company for each share they own. This gives IGT shareholders $18.25 per share, which is an approximately 18 percent premium to the company's Tuesday closing price of $15.50. Gtech stockholders will get one share of the new company for each of their existing shares.

Read more

Source: http://www.usnews.com/