Everi acquires Micro Gaming Technologies

Everi Holdings, a provider of gaming machines and payment systems to casinos, have added to its roster of loyalty and financial technology (Fintech) businesses with the $25 million purchase of privately held Micro Gaming Technologies.

Las Vegas-based MGT develops software used by gaming companies to track various promotions. The company makes kiosk hardware and software and computer programs used to run virtual draw and raffles, among other products.

MGT clients include Eldorado Resorts, among other gaming operators, according to the company’s website.

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Everi said the transaction would “compliment” the services offered in the gaming company’s financial technology division. Some of the products are being used at casinos operated by current Everi customers.

Everi made an initial payment of $15 million for MGT. Another $5 million will be paid April 1 and $5 million on December 24, 2021. Based in Las Vegas, Everi said it will fund the acquisition from existing cash and future cash flow.

Darren Simmons, Everi’s executive vice president, said the acquisition “will further strengthen our ability to provide our customers with a one-stop shop” for cash access and financial transactions.

The products will also improve “operational efficiencies” for ­casinos.

“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,” Simmons said.

Last year, Everi spent $40 million to acquire casino gaming-related assets, including self-service kiosk and marketing platform technology, from Atrient.

Macquarie Securities analyst Chad Beynon said the Atrient acquisition helped gaming companies increase customer loyalty. The company signed several new contracts worth a “couple million dollars” following the integration of the products.

“Overall, Everi ahs the ability to cross-sell these products within its portfolio,” Beynon said in a research note.

Everi also raised $107 million through a stock sale last month that helped refinance a portion of the company’s debt.

Beynon wrote the improved financial structure positioned Everi to find “tuck-in” deals such as the MGT purchase.

“We believe this is the best use of capital, as the high-growth Fintech business, in our view, should receive the highest valuation multiple and also help separate Everi from its supplier peers,” Beynon said. 

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