Casino equipment maker and financial technology supplier Everi Holdings Inc says it has terminated its stock repurchase programme with effect from May 2. The company has not repurchased its own shares via the programme since December 31 last year, it said in a Monday press release.
Everi is to complete a “strategic merger” with the gaming and digital businesses of International Game Technology Plc. The deal is expected to close “in late 2024 or early 2025,” according to a February announcement.
In Monday’s announcement, Everi noted that under the stock repurchase programme that had been in place, the company had been authorised to buy up to US$180 million of its own common stock through to November 3 this year.
Under the programme, Everi had acquired 7.5 million shares of its common stock, at an average price of US$13.40 apiece, for an aggregate amount of US$100 million, according to the latest update.
In Monday’s statement, Everi said it might declare a special dividend. It would be payable to the group’s stockholders as of a record date prior to the consummation of the merger with the IGT businesses.
The dividend was “to reflect the cash flow generated by the company through [to] the merger date,” stated the firm.
Everi also said that it implemented, on May 1, a mandatory sell-to-cover policy with respect to tax-withholding obligations in connection with the vesting and settlement of restricted stock units and performance stock units. That was “in lieu of the company’s historical practice of withholding shares, with a view to retaining cash for the purposes of the special dividend”.
The company said the cash that “may have otherwise been utilised” under its stock repurchase programme or to facilitate the tax-withholding obligations in connection with the stock units “will be more appropriately allocated toward the special dividend”.
Everi reported net income of US$84.0 million for full-year 2023, on revenue that rose by 3.2 percent year-on-year, to US$807.8 million.
Brokerage B.Riley Securities Inc suggested in an April note that the planned merger of the global gaming and PlayDigital units of IGT with Everi could be a “modernisation catapult” for the casino sector.
