LONDON, April 15, 2015 /PRNewswire/ -- International Game Technology PLC (NYSE: IGT) ("IGT") announced that its subsidiary GTECH Corporation ("the Company") has entered into a contract with the Minnesota State Lottery to provide new lottery technology, an IP-communications network, multimedia displays, self-service products, and ongoing support services, following a competitive procurement. The 7.5 year integrated services contract with the Lottery contains three renewal options of one year each, or up to one renewal of three years, or any variation thereof.
The Company expects to receive approximately $75 million to $80 million in revenues over the base 7.5 year contract period, which runs through August 9, 2023. The Minnesota State Lottery has been a valued customer since 2003.
"The Minnesota State Lottery has built its success based upon strong retailer relationships and understanding its players' preferences," said IGT CEO of North America Lottery Michael Chambrello. "We will continue to work in partnership with this forward-thinking lottery to offer the most appropriate technology solutions and a diversified product mix tailored to meet the ever-changing needs of the Lottery's retail landscape, and adapt as its business evolves over the next seven-and-a-half years. As well, we will remain focused on maximizing profitability for the Lottery by continually searching for ways to grow sales while operating effectively and efficiently."
"IGT is the right partner for building on the Lottery's 25 years of success and maximizing the Lottery's contribution to the State of Minnesota," said Minnesota State Lottery Executive Director Ed Van Petten.
Under the terms of the contract, the Company will provide the Minnesota State Lottery with innovative, expandable technology, a flexible set of retail solutions, and data-driven, decision-making tools to help increase revenues to the State of Minnesota. The Company will also replace the Lottery's existing central system with the latest version of Enterprise Series (ES) central system solution to support all levels of the Lottery's sales growth. The Request for Proposals (RFP) also called for the replacement of the Lottery's existing terminal base with approximately 3,200 new Altura® GT1200 terminals. The latest ES MultiMedia digital advertising display solution will be provided to stimulate increased brand awareness, winner awareness, and player recognition of jackpots and game activities, directly at the point-of-sale, as well as Ticket-Scan® Plus self-service ticket checkers for players. In addition, the Company will replace the current communications network with a combination of VSAT technology and Dual Comm Inside.
The Company will maintain its primary data center in Roseville, Minnesota, and its backup data center in Austin, Texas, providing ongoing services such as operation and maintenance of the central system; maintenance of the terminals and communications network; field services; retailer training; and hotline management.
Proceeds from the Minnesota State Lottery benefit the Game and Fish Fund, Natural Resource Fund, and the Environment and Natural Resource Trust Fund, among other good causes.
IGT (NYSE: IGT) is the global leader in gaming. We enable players to experience their favorite games across all regulated segments and channels, from Gaming Machines and Lotteries to Interactive and Social Gaming. Leveraging a wealth of prime content, substantial investment in innovation, in-depth customer intelligence, operational expertise and leading-edge technology, our gaming solutions anticipate the demands of consumers wherever they decide to play. We have a well-established local presence and relationships with governments and regulators in more than 100 countries around the world, and create value by adhering to the highest standards of service, integrity, and responsibility. IGT has approximately $6 billion in revenues and more than 13,000 employees. For more information, please visit www.merger.igt.com.
Cautionary Statement Regarding Forward-Looking Statements
This communication may contain forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning International Game Technology PLC ("IGT") and other matters. These statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial condition, or otherwise, based on current beliefs of the management of IGT as well as assumptions made by, and information currently available to, such management. Forward-looking statements may be accompanied by words such as "aim," "anticipate," "believe," "plan," "could," "would," "should,", "shall", "continue", "estimate," "expect," "forecast," "future," "guidance," "intend," "may," "will," "possible," "potential," "predict," "project" or the negative or other variations of them. These forward-looking statements are subject to various risks and uncertainties, many of which are outside IGT's control. Should one or more of these risks or uncertainties materialize, or should any of the underlying assumptions prove incorrect, actual results may differ materially from those predicted in the forward-looking statements and from past results, performance or achievements. Therefore, you should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include (but are not limited to) risks that the businesses of International Game Technology and GTECH S.p.A. will not be integrated successfully, following the recent completion of their business combination, or that the combined companies will not realize estimated cost savings, value of certain tax assets, synergies, growth or other anticipated benefits or that such benefits may take longer to realize than expected; risks relating to unanticipated costs of integration of the two companies; reductions in customer spending; a slowdown in customer payments and changes in customer demand for products and services; unanticipated changes relating to competitive factors in the industries in which the company operates; ability to hire and retain key personnel; the potential impact of the consummation of the business combination on relationships with third parties, including customers, employees and competitors; ability to attract new customers and retain existing customers in the manner anticipated; reliance on and integration of information technology systems; changes in legislation or governmental regulations affecting the company; international, national or local economic, social or political conditions that could adversely affect the company or its customers; conditions in the credit markets; risks associated with assumptions the company makes in connection with its critical accounting estimates and legal proceedings; and the company's international operations, which are subject to the risks of currency fluctuations and foreign exchange controls. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties that affect the company's business, including those described in IGT's registration statement on Form F-4 and other documents filed from time to time with the Securities and Exchange Commission (the "SEC"). Except as required under applicable law, the company does not assume any obligation to update these forward-looking statements. Nothing in this announcement is intended, or is to be construed, as a profit forecast or to be interpreted to mean that earnings per IGT share for the current or any future financial years will necessarily match or exceed the historical published earnings per IGT share, as applicable. All forward-looking statements contained in this communication are qualified in their entirety by this cautionary statement. All subsequent written or oral forward-looking statements attributable to IGT, or persons acting on its behalf, are expressly qualified in its entirety by the cautionary statements contained throughout this communication.
Robert K. Vincent, Corporate Communications, (401) 392-7452
James Hurley, Investor Relations, (401) 392-7190
SOURCE International Game Technology PLC (IGT)