GGRAsia – Everi acquiring Australia’s ecash for guaranteed US$24mln

Everi acquiring Australia’s ecash for guaranteed US$24mln

Feb 08, 2022 Newsdesk Latest News, Trends & Tech

United States-based casino equipment and financial technology (fintech) firm Everi Holdings Inc has announced its second Australian-company acquisition target in the space of a month.

The latest is ecash Holdings Pty Ltd, described as a provider of cash-handling and financial-payment products for the gaming industry in Australia, Asia, Europe, and the United States.

Everi said in a Monday announcement, it intended to acquire the ecash entity via guaranteed minimum payments totalling AUD33 million (US$23.5 million).

There would be an initial payment of AUD20 million at the time of closing the deal, with the remaining AUD13 million to be paid in tranches in 2023 and 2024, coinciding with the first and second anniversary of the deal.

Subject to the target business achieving certain growth targets, there would be an additional payment of up to AUD10 million, which would push the value of the deal up to AUD43 million.

Everi said it expected to fund the total purchase price from existing cash on hand, and future cash flow. The closing of the transaction, subject to customary conditions, is expected to occur within 60 days.

The suitor said the target would provide a “complementary portfolio of new customer locations throughout Australia, the U.S.,” and other places.

Randy Taylor, Everi’s president and chief operating officer, was cited as saying in a press release that the suitor would take on New South Wales-based ecash’s “entire team”.

In particular, ecash would give Everi “entry into the large Australian gaming market thanks to their experienced team, proven product portfolio and established customer base”.

Darren Simmons, Everi executive vice president and fintech business leader, was also quoted in Monday’s release. He stated regarding the benefits to Everi of acquiring the Australian company: “We also expect that several of our fintech and regulatory technology products, such as our Trilogy loyalty solutions and anti-money laundering software, will have applicability and add value for Australian gaming operators.”

In early January, Everi announced it would acquire “strategic assets” of the Australia-based Atlas Gaming group, and retain members of the target’s “experienced team”. Melbourne, Victoria-based Atlas Gaming has developed what it describes on its website as a “world-class, leading-edge software gaming platform”.