Everi Holdings has bolstered its player loyalty and marketing solutions through the acquisition of assets from Micro Gaming Technologies (MGT).
Las Vegas-headquartered Everi will pay a total of $25m (£19.0m/€22.3m) for MGT’s products, software and technologies for casino operators. The single-source provider of gaming products, financial technology and player loyalty solutions said the assets represent a complementary addition to its portfolio of FinTech products and services.
Under the terms of the transaction, Everi acquired certain assets of MGT for an initial payment at the time of closing of $15m, with a further $5m to be paid 1 April 2020 and another $5m on 24 December 2021.
Everi said it expects to fund the acquisition from existing cash on hand and future cash flow.
Darren Simmons, Everi’s executive vice president and FinTech business leader, said: “The acquisition of the MGT assets will further strengthen our ability to provide our customers with a one-stop shop of comprehensive, integrated solutions that enable a seamless, convenient experience for casino patrons while delivering operational efficiencies for casino operators.
“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.
“We have already begun the process of developing a roadmap for integrating the best functionality of MGT’s platform with the best of our existing loyalty and FinTech suite of products and services with an eye towards further strengthening our overall solution set.”
In its most recent filing in Q3 2019, Everi announced that its revenue increased 12% to a quarterly record $134.6m, reflecting growth in both Games and FinTech revenues. Net income improved 350% to $9.3m from $2.1m.
Looking ahead following the MGT announcement, Simmons added: “We see a significant opportunity for growth in the player loyalty market and the planned acquisition of the MGT assets represents a significant step forward in our goal to establish loyalty and marketing-based services as a meaningful growth driver for our business.
“In addition, combining the product capabilities of MGT’s solutions with our innovative existing and planned FinTech digital products will help accelerate the development and commercialisation of our ‘Digital Neighbourhood.’”