GGRAsia – Everi US$59mln deal for assets of bingo provider Video King

Everi US$59mln deal for assets of bingo provider Video King

Apr 13, 2023 Newsdesk Industry Talk, Latest News

Everi Holdings Inc says it has a purchase agreement to acquire certain assets of VKGS LLC, a privately-held entity trading as Video King, for a consideration of US$59 million, to be paid on closure of the deal.

United States-based Video King supplies electronic bingo gaming tablets, video gaming content, instant-win games, and gaming systems.

Everi is a provider of gaming content and products to the land-based and online casino sectors, and also supplies financial technology (fintech) and player-management technology.

In a Tuesday announcement, Everi said it expected to complete the transaction within 60 days, subject to customary closing conditions.

The acquisition, which will include the majority of Video King’s assets, will be funded from existing cash on hand.

GLC Advisors & Co is financial advisor to Video King on the transaction.

Everi said it expected the deal – once completed – would be “immediately additive” to the company’s adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) and free cash flow.

The filing added that Video King – which it said produced more than US$25 million in revenue in 2022 via an installed base of 50,000 portable electronic bingo tablets in tribal casinos, commercial casinos, cruise ships and other venues – was currently licensed in circa 60 jurisdictions.

Everi said that post-deal, and subject to regulatory approval, “an estimated 20 percent” of Video King’s installed base of portable electronic gaming tablets “may be enabled to provide players with traditional bingo games and Class II video poker, slots and instant-win games, as well as with a digital wallet and loyalty products”.

Tim Richards, Everi executive vice president, chief strategy and digital officer, was cited in the announcement as saying: “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.”

The deal would also be a “new source to generate recurring revenue,” added the executive.