1/7 I’ve followed the Italian gambling market for a long time and today’s announcement illustrates what an incredible job, Guglielmo, Mario, and @CornellMBA_JM have done at Gamenet. https://www.reuters.com/article/intl-game-tech-ma-gamenet/igt-sells-italian-gaming-businesses-to-gamenet-for-950-mln-euros-idUSL8N2IN2DO

2/7 The Italian gambling market is the largest regulated market in the world, but is consolidating at a rapid pace due to regulations.

3/7 Gamenet has had a phenomenal decade growing EBITDA from €14m in 2010 to €338m this year (pro-forma), making it a leader in most verticals.

4/7 With this acquisition, Gamenet is today the undisputed leader in AWP and VLT slots – the most important vertical in Italian gambling.

5/7 The transaction values the $IGT Italian B2C Gaming business at €1.1B, 5.3X the €207M EBITDA. Gamenet has had an history of acquiring assets at 3-4x EBITDA. $APO acquired Gamenet at 6.1x EBITDA.

6/7 Sell-side analysts don’t get Italian gambling: It's not going away anytime soon, it is ingrained in the DNA of the people. Regardless of regulation or political regime. Operators with a balance sheet, and retail and online assets will survive – the rest will go extinct.

7/7 I would own these assets on any day of the week. The barriers to entry are so high. This is a bargain.