Why International Game Technology's Shares Popped 21% in September

Shares of gambling industry supplier International Game Technology (NYSE: IGT) jumped 20.5% in September, according to data provided by S&P Global Market Intelligence, after the company signed some important licensing agreements. And the market thinks these deals will help earnings and even generate high margin revenue for the company going forward.

On Sept. 5, IGT signed a cross-licensing agreement with Scientific Games Corporation (NASDAQ: SGMS) to offer game features from each other's patent portfolios. In essence, the deal gives both companies access to make games using the other's patents and assures they won't spend millions suing each other over the patents.

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Source: Fool.com