International Game Technology (IGT), a global leader in the design, development and manufacture of gaming machines and systems products, as well as online and mobile gaming solutions for regulated markets, has reached a definitive agreement to purchase Double Down Interactive LLC-a leading online social gaming company and developer of the popular DoubleDown Casino found on Facebook.

Launched in April 2010, the DoubleDown Casino is the world’s largest virtual casino and one of the top four social media games in 2011 as rated by Facebook. According to AppData.com, DoubleDown Casino currently has 4.7 million monthly active users, up from 3.3 million in October 2011. With a broad and expanding portfolio, Double Down offers blackjack, slots, slot tournaments, video poker, and roulette to social gamers all around the world.

The total consideration includes $250 million in cash, $85 million in retention payments over the next two years and up to $165 million in cash payable over the next three years subject to Double Down meeting certain financial performance targets. IGT expects to fund the transaction from cash on hand.

“Double Down and IGT share complementary cultures focused on innovation and creativity. Both companies are committed to providing unrivaled quality, service and entertainment to millions of players,” said Greg Enell, CEO of Double Down. “Leveraging IGT’s Research and Development, global reach, and best-in-class content will provide our loyal player base with an even more robust experience and is expected to augment Double Down’s growth trajectory.”

The addition of Double Down provides IGT instant size and scale in the fast growing world of casino-style social gaming and is expected to broaden IGT’s popular gaming titles beyond the physical casino to Facebook, the world’s largest social network with over 800 million global users. This distribution model is anticipated to provide IGT an opportunity to entertain players with consistent, ubiquitous, thrilling gaming experiences across multiple platforms.

“As technological innovations increasingly influence consumer behavior, social dynamics are quickly transforming entertainment and gaming experiences everywhere,” said Patti Hart, CEO of IGT. “The addition of Double Down launches IGT into a leadership position in social gaming, extends our global reach through new mediums, and leverages our unmatched expertise in game development. We intend to drive meaningful value from this rapidly growing distribution platform that reaches a new, but complementary, demographic of gamers.”

The transaction is estimated to be accretive to IGT’s fiscal 2012 adjusted earnings and is projected to close within the second quarter of its current fiscal year. Greg Enell will continue to lead Double Down and the company’s operations will remain in Seattle, Wash., after the acquisition is complete. Through the integration, IGT will operate Double Down with the appropriate level of independence needed to continue to foster exceptional growth.

Completion of the transaction is subject to customary closing conditions.