Everi agrees deal to acquire Video King12th April 2023 2:07 pm GMT
New York-listed gaming solutions and payments provider Everi Holdings is expanding its digital gaming content through an agreement to acquire certain assets of Video King for $59m.
The acquisition will accelerate the growth of Everi’s Games segment through the acquisition of complementary assets and an established customer base in over 60 jurisdictions.
“Video King provides Everi with an expansive new channel to deploy our growing catalogue of digital iGames, as well as enhance the player experience by incorporating our digital wallet and loyalty products, while adding a new source to generate recurring revenue,” said Everi EVP, chief strategy and digital officer Tim Richards. “With an expanding demographic audience looking to engage in increased social and leisure activities, we see a significant opportunity to collaborate with the Video King team to develop new gaming content and play enhancements to optimize player engagement and drive increased customer traffic.”
The transaction is anticipated to close within 60 days, subject to customary conditions, and funded from existing cash on hand.
“Over the past several years, we have had great success with executing on acquisitions that grow our product capabilities and the markets we serve,” said Everi CEO Randy Taylor. “During this time, we have established a track record of successfully scaling up acquisitions that have delivered an attractive return on investment and helped drive strong cash flow. We are highly confident that by helping to elevate our current Games, FinTech and Digital solutions with and adjacent to our established customer base, the acquisition of Video King will meet those same criteria and offer Everi with another lever for growth.”
Video King generated annual revenues of $25m in 2022.
Shares in Everi Holdings Inc. (NYSE:EVRI) closed unchanged at $16.55 per share in New York Tuesday.