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2020 has just begun and Everi Holdings, a “fintech” company; looks to have started the year off in a positive way launching a $25 Million acquisition of Las Vegas casino tech company Micro Gaming Technologies.
Evera are a company that provides both kiosks for customer service as well as content for electronic gaming to casinos and they are shelling out $25 million in order to purchase assets that belong to the Las Vegas based company of Micro Gaming Technologies, Inc. (MGT). This according to a recent filing with NASDAQ.
MGT have software that tracks and then reports campaigns for casino customers and automates their delivery. On December 24th of 2019 they were given $15 million by Everi for their assets and in April they will receive an additional $5 million. On December 24th of 2020 MGT will get the last $5 million in the deal. According to Everi any additional payments made are expected to be taken care of by sales that are anticipated and/or cash already on hand.
There has not been much information on the details of the deal in the specific assets that Everi would get from MGT. A press release stated that “MGT’s products, software and technologies for casino operators represent an attractive, complementary addition to Everi’s portfolio of fintech [financial technology] products and services. The acquisition also provides Everi with a portfolio of customer locations where MGT’s solutions are currently installed, including at properties of many key Everi customers.”
It should not be very hard for Everi to meet their financial obligations. In order to secure the deal, they are taking advantage of the growing US casino and gaming industry. The confidence they have in order to secure their deal with MGT to take care of the financial aspect of it is merited. Everi reported a net loss of $4.3 million in the third quarter of 2017. However, in the third quarter of 2018 they bounced back with a $2.1 million profit. That success continued in 2019 where in the third quarter Everi recorded net income of $9.3 million.
New Jersey Casinos & Beyond
Everi will likely continue to have success with another deal they recently made. In November 2019, Everi partnered up with Scientific Games and will launch iGaming in New Jersey, Canada, and Europe.
Darren Simmons, executive VP for Everi, stated that, “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,”
“We see a significant opportunity for growth in the player loyalty market”; and the acquisition of the MGT assets represented “a significant step forward in our goal to establish loyalty and marketing-based services as a meaningful growth driver for our business.”