Italy's Lottomatica said on Tuesday it had completed the purchase of US peer GTech in a $4.7 billion deal to create the world's biggest lottery operator after receiving the go-ahead from several US states. The purchase creates a group operating in 50 countries with 6,300 employees and combined sales of more than $2 billion in 2005.
The deal seemed to be in danger of collapsing when in July the State of Texas said it was investigating how GTech obtained contracts in some countries. Texas and several other states gave the green light to the agreement this month. Lottomatica is 56 percent owned by Italian publishing group De Agostini, headed by Chief Executive Officer Marco Drago.
Since taking the helm in 1997, Drago has bought a number of companies, including Panini and Seat Pagine Gialle, which he sold in 2000 for a profit.
"The acquisition of GTech, which allows Lottomatica to become a global player, reinforces De Agostini as well, putting it in a position to continue its international expansion," Drago said in the statement.
With the completion of Lottomatica's all-cash offer of $35 a share, GTech shares will no longer be listed on the New York Stock Exchange as of Tuesday, it said in a statement.
Lottomatica shares rose as much as 1.8 percent after the company said it had completed the take-over and were 1.5 percent higher at 29.17 euros at 1422 GMT in Milan.
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