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January 16 – International Game Technology (IGT), the Las Vegas-based gaming giant has announced its intention to acquire leading online social games developer, DoubleDown Interactive.

IGT will spend up to $500 million to acquire the group, which has been in operation since 2004, and has a powerful presence on social networking site, Facebook thanks to its popular DoubleDown Casino.

The deal for IGT to acquire DoubleDown Interactive will see it pay $250 million in cash upfront, $85 million in retention payments over the next two years, plus an additional $165 million over the next three years, depending on whether DoubleDown hits pre-agreed financial targets.

“The addition of DoubleDown Interactive launches IGT into a leadership position in social gaming, extends our global reach through new mediums and leverages our unmatched expertise in game development,” said the Chief Executive Officer for IGT, Patti Hart. “We intend to derive meaningful value from this rapidly growing distribution platform that reaches a new but complementary demographic of gaming.”

Hart pointed out that as technological innovations increasingly influence consumer behaviour, social dynamics are quickly transforming entertainment and gaming experiences around the world.”

DoubleDown and IGT Share Complementary Cultures

According to the Chief Executive Officer for DoubleDown Interactive, Greg Enell, both his group and IGT share “complementary cultures” which focus on innovation and creativity.

“Both companies are committed to providing unrivalled quality, service and entertainment to millions of players,” he said.

Enell said that leveraging IGT’s research and development, global reach and best-in-class content would provide DoubleDown’s loyal player base with an even more robust experience “and is expected to augment DoubleDown Interactive’s growth trajectory.”

DoubleDown Interactive has nearly 5 million regular users on Facebook and its casino was voted one of the top four social media games of 2011.

The acquisition deal will be completed during the second quarter, ending in March 2012.

The result, according to IGT, would see the group obtain “instant size and scale in the fast growing world of casino style social gaming.”

IGT is a global gaming company which specializes in the design, manufacture and marketing of electronic gaming equipment and systems.  The Nevada based IGT has a two pronged operation base – in North America and internationally.

72% of IGT’s consolidated revenues originated from the US in 2010, while its international business made up 28%.