Everi Acquires Strategic Assets From Provider of Casino Loyalty and Marketing Technology, Micro Gaming Technologies
Monday 30th December 2019
Transaction expected to be immediately accretive to earnings and Adjusted EBITDA
LAS VEGAS, Dec. 30, 2019 (GLOBE NEWSWIRE) -- Everi Holdings Inc. (NYSE:EVRI) ("Everi" or the "Company"), a premier single-source provider of gaming products, financial technology and player loyalty solutions in the gaming industry, today announced that its wholly owned subsidiary Everi Payments Inc. has acquired certain strategic assets of Micro Gaming Technologies Inc. ("MGT"), a privately owned provider of self-service casino loyalty and marketing products and promotional tools and apps. MGT's products, software and technologies for casino operators represent an attractive, complementary addition to Everi's portfolio of FinTech products and services. The acquisition also provides Everi with a portfolio of customer locations where MGT's solutions are currently installed, including at properties of many key Everi customers.
Under the terms of the transaction, Everi acquired certain assets of MGT for an initial payment at the time of closing of $15 million, with a further $5 million to be paid April 1, 2020 and $5 million on December 24, 2021. Everi expects to fund the acquisition from existing cash on hand and future cash flow.
Darren Simmons, Everi's Executive Vice President and FinTech Business Leader, said, "The acquisition of the MGT assets will further strengthen our ability to provide our customers with a one-stop shop of comprehensive, integrated solutions that enable a seamless, convenient experience for casino patrons while delivering operational efficiencies for casino operators. 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. We have already begun the process of developing a roadmap for integrating the best functionality of MGT's platform with the best of our existing loyalty and FinTech suite of products and services with an eye towards further strengthening our overall solution set.
"We see a significant opportunity for growth in the player loyalty market and the planned acquisition of the MGT assets represents a significant step forward in our goal to establish loyalty and marketing-based services as a meaningful growth driver for our business. In addition, combining the product capabilities of MGT's solutions with our innovative existing and planned FinTech digital products will help accelerate the development and commercialization of our 'Digital Neighborhood.' We are extremely focused on driving our vision of providing seamless, integrated, real-time, self-service connections that offer our casino customers the ability to aggregate a guest's interactions providing for a 360-degree view of their spending patterns within the casino enterprise."
The forward-looking statements in this press release are subject to a variety of risks and uncertainties, including those set forth under the heading "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our periodic reports filed with the Securities and Exchange Commission (the "SEC"), including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2018, and are based on information available to us on the date hereof.
These cautionary statements qualify our forward-looking statements and you are cautioned not to place undue reliance on these forward-looking statements. Any forward-looking statements, including the acquisition of certain assets discussed herein and any expected benefits from those assets and combining said assets with Everi's existing business, speaks only as of the date, today December 30, 2019, on which it is made, and we do not intend, and assume no obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
About Everi Holdings
Everi is a leading supplier of imaginative entertainment and trusted technology solutions for the casino, interactive, and gaming industry. With a focus on both customers and players, the Company develops entertaining games and gaming machines, gaming systems and services, and is the preeminent and most comprehensive provider of core financial products and services, player loyalty tools and applications, and intelligence and regulatory compliance solutions. Everi's mission is to provide casino operators with games that facilitate memorable player experiences, offer seamless and secure financial transactions for casinos and their patrons, and deliver software tools and applications to improve casino operations efficiencies and fulfill regulatory compliance requirements. Everi provides these products and services in its effort to help make customers successful. For more information, please visit www.everi.com, which is updated regularly with financial and other information about the Company.