Gaming content and solutions provider Everi Holdings entered into a purchase agreement to acquire certain assets of Video King, a privately-owned provider of integrated electronic bingo gaming tablets, video gaming content, instant win games, and systems for $59 million.
Everi expects 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 and is expected upon closing to be immediately additive to the company’s Adjusted EBITDA and Free Cash Flow.
Tim Richards, Everi Executive Vice President, Chief Strategy and Digital Officer, said: “Video King provides Everi with an expansive new channel to deploy our growing catalog of digital iGames, as well as enhance the player experience by incorporating our digital wallet and loyalty products while adding a new source to generate recurring revenue.”
“With an expanding demographic audience looking to engage in increased social and leisure activities, we see a significant opportunity to collaborate with the Video King team to develop new gaming content and play enhancements to optimize player engagement and drive increased customer traffic,” he explained.
Tim Richards, Everi Executive VP, Chief Strategy and Digital Officer
The acquisition is expected to provide Everi with complementary assets and an established customer base to enable additional growth in its Games segment. Currently licensed in approximately 60 jurisdictions, Video King is expected to expand the addressable market for Everi’s player-popular digital gaming content.
Subject to regulatory requirements, an estimated 20% of Video King’s installed base of portable e-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.
Video King generated revenue of more than $25 million in 2022, primarily from recurring revenues generated by an installed base of more than 50,000 portable electronic bingo tablets in tribal casinos, commercial casinos, charitable bingo halls, military bases, and cruise lines, as well as from the sale of traditional bingo equipment and consumable products.
For his part, Tim Stuart, Chief Executive Officer and a co-founder of Video King, stated: “We are confident that as part of Everi, Video King will be in a very strong position to expand our product offerings to provide our long-time loyal customer base new enhanced games for our tribal, charitable and military markets.”
“The combination of Everi’s games and other digital offerings with our strong electronic bingo base creates a unique opportunity to accelerate future growth,” he added.
Lastly, Randy Taylor, Everi’s Chief Executive Officer, added: “Over the past several years, we have had great success executing acquisitions that grow our product capabilities and the markets we serve. During this time, we have established a track record of successfully scaling up acquisitions that have delivered an attractive return on investment and helped drive strong cash flow.”
“We are highly confident that by helping to elevate our current Games, FinTech, and Digital solutions with and adjacent to our established customer base, the acquisition of Video King will meet those same criteria and offer Everi another lever for growth,” the CEO concluded.
GLC Advisors & Co. is acting as the exclusive financial advisor to Video King on the transaction.
Original article: https://www.yogonet.com/international/news/2023/04/12/66780-everi-to-acquire-assets-of-electronic-bingo-gaming-device-and-systems-provider-video-king-for-59m
