‘Tuck-in’ acquisition provides Everi with additional financial technology products

CDC Gaming Reports
Howard Stutz has over 30 years of experience reporting on the gaming industry.

Everi Holdings announced the acquisition Monday of “strategic assets” developed by Micro Gaming Technologies (MGT), a privately owned provider of self-service casino loyalty and marketing products.

The transaction includes software and technologies for casino operators.

Las Vegas-based Everi said the transaction would “compliment” the services offered in the gaming equipment company’s financial technology division. Some of the products are being utilized at casino operated by current Everi customers.

Everi made an initial payment of $15 million for MGT. Another $5 million will be paid April 1 and $5 million on December 24, 2021.  Everi said it will fund the acquisition from existing cash and future cash flow.

Everi Executive Vice President Darren Simmons said the acquisition “will further strengthen our ability to provide our customers with a one-stop shop” for cash access and financial transactions. The products will also improve “operational efficiencies” for casinos.

“By combining our existing Everi player loyalty and marketing solutions with these assets from MGT, we will be better positioned to offer our customers the industry’s most extensive suite of loyalty and marketing technology,” Simmons said.

Earlier this year, Everi spent $40 million to acquire casino gaming-related assets, including self-service kiosk and marketing platform technology, from Atrient.

Macquarie Securities gaming analyst Chad Beynon told investors Monday the Atrient deal helped gaming operators increase gaming patron loyalty. The company signed several new contracts worth a “couple million dollars” following the integration of the products.

“Overall, Everi has the ability to cross-sell these products within its portfolio,” Beynon said in a research note.

Everi raised $107 million through a stock sale earlier this month that helped refinance a portion of the company’s debt. Beynon said the improved financial structure positioned Everi to find “tuck-in” deals such as the MGT purchase.

“We believe this is the best use of capital, as the high-growth FinTech business, in our view, should receive the highest valuation multiple and also help separate Everi from its supplier peers,” Beynon said.

Shares of Everi, traded on the Nasdaq, closed at $13.39 Monday, up 8 cents or 0.60%.