GGRAsia – Everi to pay US$25mln for some Micro Gaming Tech assets

Everi to pay US$25mln for some Micro Gaming Tech assets

Dec 31, 2019 Newsdesk Latest News, Trends & Tech

Everi Holdings Inc, a specialist in cash handling technology – including customer service kiosks – and electronic game content for the casino industry, is to pay a total of US$20 million to acquire certain assets of privately-held Micro Gaming Technologies Inc (MGT).

MGT produces software to automate, track and report casino player promotions on behalf of gaming venue operators, according to its corporate website.

Everi said in a Monday filing to Nasdaq that an initial US$15 million payment had been made on December 24 to the vendor, with a further US$5 million to be disbursed on April 1, 2020, and US$5 million to be paid on December 24, 2021. Everi stated it expected to fund the acquisition from existing cash on hand and future cash flow.

Neither a press release nor a filing from United States-based Everi went into details regarding the assets it had acquired from the Las Vegas, Nevada-based MGT.

But the Everi press release noted: “MGT’s products, software and technologies for casino operators represent an attractive, complementary addition to Everi’s portfolio of fintech [financial technology] products and services.”

It added: “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.”

Darren Simmons, Everi executive vice president and fintech business leader, said in a prepared statement contained in the release: “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.”

In its full-year 2018 results published in March, Everi had noted that its fintech business had provided nearly 45 percent of group revenues in that calendar year.

Mr Simmons noted in the Monday filing regarding the deal with MGT: “We see a significant opportunity for growth in the player loyalty market,” and the acquisition of the assets represented “a significant step forward in our goal to establish loyalty and marketing-based services as a meaningful growth driver for our business”.