Anchor Gaming, the parent company of United Tote, has agreed to a merger with joint venture partner International Game Technology.

The deal would involved a stock for stock transaction valued at $1.365 billion, which is based on a price of $59.20 per share and includes assuming $430 million in debt as of March 31.

Shareholders would receive one share of International Game Technology stock for every share they hold of Anchor Gaming. If the deal is approved by shareholders and receives regulatory approval, it would create a gaming equipment company with combined annual revenue of $2 billion and control of 60% of the United States market. The merger also would reduce the number of major U.S. gaming equipment makers down to five from six.

"We are very enthusiastic about this business combination," said International Game Technology president and chief executive G. Thomas Baker in a statement. "Upon closing, IGT will be able to recognize 100% of the joint revenue and profits previously shared by the companies. This is a significant strategic benefit."

Upon completion of the deal, Anchor's president and CEO Thomas Matthews would take on the additional role of chief operating officer of IGT. One new director besides Matthews would be added to the IGT board.

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