International Game Technology (NYSE: IGT) experienced a setback as its shares traded lower following the announcement of a cybersecurity incident. The company disclosed in a regulatory filing that an unauthorized third party accessed certain systems on November 17, causing disruptions. In response, IGT activated its cybersecurity incident response plan and initiated an investigation with external advisors to address the unauthorized activity. Some systems were taken offline as a precautionary measure.
IGT is a major provider of lottery services globally, including state games and scratchers. While cybersecurity incidents in the gaming industry have historically resulted in financial losses for affected companies, the financial impact of this breach on IGT remains uncertain. Analysts suggest that if the company can quickly resolve the issue, the financial consequences may be minimal. Business continuity plans are already in motion, and IGT aims to maintain normal operations during the remediation process. Potential delays in product deliveries are expected to be short-term rather than prolonged.
Interestingly, this cybersecurity incident comes shortly after Everi Holdings (NYSE: EVRI) shareholders approved a transaction involving the merger of Everi with IGT’s global gaming and PlayDigital units. The acquisition by an affiliate of Apollo Global Management (NYSE: APO) is valued at $6.3 billion, with IGT set to receive $4.05 billion in gross proceeds. The merger is anticipated to be finalized in the third quarter of 2025.
Despite the timing of the cyber breach, there is currently no evidence linking the incident to the upcoming merger or indicating an attempt to disrupt the process. The breach seems to be contained within IGT’s internal systems rather than affecting consumer-facing operations. Any potential shipping delays resulting from the incident are expected to be manageable in terms of duration.
In conclusion, while the cybersecurity incident at IGT raised concerns and led to a decline in share prices, the company’s prompt response and ongoing efforts to address the breach suggest a commitment to resolving the issue efficiently. As investigations continue and systems are secured, IGT remains focused on safeguarding its operations and maintaining business continuity. With the merger with Everi on the horizon, stakeholders will be closely monitoring developments to ensure a smooth transition and consolidation of the gaming entities under Apollo Global Management.
