Everi Holdings, a prominent player in the gaming industry, has recently made a significant move by entering into a purchase agreement worth $59 million. This strategic acquisition will see Everi acquiring the majority of Video King’s assets, a company known for its electronic bingo gaming tablets, video gaming content, instant win games, and gaming systems.
Everi’s Acquisition of Video King:
Everi Holdings has made a bold move to expand its product portfolio and market presence by agreeing to acquire a substantial portion of Video King’s assets. This acquisition, valued at $59 million in cash (subject to customary net working capital adjustments), underscores Everi’s commitment to growth through strategic acquisitions.
Randy Taylor, CEO of Everi, emphasized the company’s successful history of scaling up acquisitions to drive returns on investment and cash flow. He expressed confidence that this acquisition of Video King’s assets would further elevate Everi’s Games, FinTech, and Digital solutions while providing a new avenue for growth.
Strategic Benefits of the Acquisition:
Tim Richards, Everi’s Executive Vice President and Chief Strategy and Digital Officer, highlighted the strategic advantages of this acquisition. Video King offers Everi an expanded channel to deploy its growing catalog of digital iGames. Moreover, it provides an opportunity to enhance the player experience by integrating Everi’s digital wallet and loyalty products. This acquisition is expected to generate recurring revenue for Everi, making it a key source of financial stability.
With a growing demographic seeking increased social and leisure activities, Everi aims to collaborate with Video King to develop new gaming content and play enhancements, thereby optimizing player engagement and driving higher customer traffic.
Vision for Future Growth:
Tim Stuart, CEO and co-founder of Video King, expressed confidence that the acquisition by Everi would empower the company to expand its product offerings. This expansion will benefit Video King’s loyal customer base in tribal, charitable, and military markets. The combination of Everi’s games and digital offerings with Video King’s electronic bingo expertise creates a unique opportunity for accelerated growth in the future.
Transaction Timeline:
Everi anticipates completing this acquisition within 60 days, marking a significant milestone in the company’s journey to enhance its presence and offerings in the gaming industry.
Everi Holdings’ purchase agreement to acquire Video King’s assets for $59 million represents a strategic move to diversify and expand its gaming portfolio. The acquisition holds the promise of enhanced player experiences, recurring revenue streams, and new avenues for growth. As Everi moves forward with this transaction, the gaming industry will be closely watching to see how this strategic investment shapes the company’s future and its impact on the broader gaming landscape.