The Las Vegas based Slot-machine maker International Game Technology (IGT) has confirmed that it intends acquiring Double Down Interactive LLC, the leading social media developer for up to $500 million.

Double Down Interactive has been operating since 2004 and due to its popular Double Down Casino, it has a powerful presence on Facebook, the social networking site.

In terms of the acquisition International Game Technology will pay $250 million upfront in cash for Double Down and a further amount of $85 million in retention payments over the following two years. A further amount of $165 million performance-based payments will be paid for the following three years. International Game Technology intends funding the acquisition by using cash on hand.

Information provider AppData.com has revealed that Double Down launched on Facebook in 2010 and is known to be the world’s largest virtual casino boasting 4.7 million monthly active users.

Chief Executive Officer for IGT, Patti Hart, reported that the new deal will launch IGT into a leadership position in social gaming, extend their global reach through new mediums and leverage their unrivaled capability in game development.

Greg Enell, Chief Executive Officer for Double Down Interactive, stated that his group shares “complementary cultures” with International Games Technology which focus on originality and inventiveness. Enell added that both Double Down and International Games Technology are committed to providing players with unrivaled quality, service and enjoyment.

International Games Technology is a global gaming company specializing in the manufacture, design and marketing of electronic gaming equipment and systems. 72% of its consolidated revenues originated from the United States in 2010 while its international business made up 28%.