Everi acquires Micro Gaming Technologies, expanding its fintech and loyalty solutions in the gaming sector. Discover how this move strengthens Everis portfolio.
Everi Expands Its Fintech and Loyalty Offerings with Strategic Acquisition
In a significant move aimed at bolstering its portfolio of loyalty and financial technology solutions for the gaming industry, Everi Holdings has announced the acquisition of Micro Gaming Technologies (MGT) for a sum of $25 million. This acquisition underscores Everi’s commitment to enhancing its suite of products and services that cater to the evolving needs of casino operators and their patrons.
Everi Holdings completed the acquisition of Micro Gaming Technologies (MGT) with an initial payment of $15 million, followed by two subsequent payments of $5 million each on April 1 and December 24, 2021, demonstrating a structured financial plan to expand its fintech and loyalty solutions portfolio for the gaming industry.
Understanding the Synergy Between Everi and MGT
Everi Holdings, renowned for its comprehensive range of gaming machines and payment systems designed specifically for casinos, has taken a decisive step to enrich its loyalty and fintech capabilities. By acquiring MGT, a Las Vegas-based entity known for its innovative software solutions that track various gaming promotions, Everi aims to complement and expand its existing offerings in the financial technology division. MGT’s portfolio, which includes kiosk hardware, software, and systems for managing virtual draws and raffles, aligns perfectly with Everi’s strategic focus on enhancing operational efficiencies and customer engagement at casinos.
MGT’s clientele, including notable operators like Eldorado Resorts, speaks volumes about the company’s expertise and the value it brings to Everi’s ecosystem. This merger not only broadens Everi’s product range but also solidifies its position as a one-stop solution provider for casino operators seeking to optimize their loyalty programs and financial transaction processes.
The Financials Behind the Deal
The acquisition deal, valued at $25 million, was structured with an initial payment of $15 million followed by subsequent payments slated for April 1 and December 24, 2021, amounting to $5 million each. Everi’s strategic financial planning and the utilization of existing cash alongside future cash flows facilitated this acquisition, demonstrating the company’s robust financial health and its ability to pursue growth-oriented investments. Everi’s executive vice president, Darren Simmons, highlighted the acquisition’s strategic importance, emphasizing its potential to streamline casino operations and enrich the customer experience through an integrated suite of loyalty and marketing technologies.
Everi’s Strategic Growth Trajectory
This acquisition is a testament to Everi’s aggressive growth strategy, which included a notable $40 million investment last year for acquiring casino gaming-related assets from Atrient. This move not only enhanced Everi’s product offerings but also significantly bolstered its customer loyalty initiatives. Following the integration of Atrient’s technologies, Everi reported the signing of several lucrative contracts, indicating strong market demand for its expanded solutions.
Furthermore, Everi’s recent financial maneuvers, including a $107 million stock sale, have been pivotal in refining the company’s capital structure and enabling it to pursue such strategic acquisitions. Industry analysts, including Macquarie Securities’ Chad Beynon, have lauded Everi’s strategic investment in its high-growth fintech business, recognizing it as a judicious use of capital that distinguishes Everi from its competitors and augments its market valuation.
As Everi Holdings integrates Micro Gaming Technologies into its fold, the combined strengths of both entities are set to offer unparalleled value to casino operators, paving the way for enhanced operational efficiencies, enriched customer experiences, and sustained growth in the competitive gaming and fintech landscape.
