Everi Expands Cashless Gaming Offerings in ecash Holdings Buy

Posted on: February 7, 2022, 11:03h. 

Last updated on: February 7, 2022, 12:16h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Everi Holdings (NYSE:EVRI) is bolstering its cashless gaming portfolio through the $30.41 million acquisition of ecash Holdings Pty Ltd.

Everi Holdings
An Everi cashless gaming machine displayed at G2E 2018. The company is buying ecash Holdings. (Image: Fantini Research)

ecash Holdings is a privately held, Australia-based developer and provider of cash handling and payment technology for gaming companies in Australia, Asia, Europe and the US. The deal is an addition to Everi’s growing Fintech business.

The acquisition will provide Everi with a complementary portfolio of new customer locations throughout Australia, the United States and other geographies. The closing of the transaction, subject to customary conditions, is expected to occur within 60 days,” according to a statement issued by Las Vegas-based Everi.

It’s the second Australia acquisition for Everi in as many months. In January, the company said it’s buying select assets from Atlas Gaming. Atlas is a producer and provider of proprietary gaming content and products. Financial terms of that transaction weren’t disclosed.

Terms of ecash Holdings Deal

Initially, Everi will dole out $14 million for ecash Holdings, with remaining payments to occur on the deal’s anniversary dates in 2023 and 2024.

“Subject to achieving certain growth targets, there will be an additional contingent payment of up to AUD$10 million, which could increase the total consideration up to AUD$43 million. Everi expects to fund the total purchase price from existing cash on hand and future cash flow,” according to the statement.

A major part of the Everi investment thesis is the company’s fintech offerings, and that’s underpinned by the move to cashless gaming at casinos across the country — one sped along by the coronavirus pandemic.

While Everi’s fintech story is an increasingly prominent part of the equity thesis, it’s also still in its early innings. The company’s gaming device business is levered to the ongoing recovery in visitation levels at the Las Vegas Strip and regional and tribal casinos, while its fintech operation is tethered to the still-nascent move by operators to cashless gaming.

Everi Expansion

With the ecash Holdings and Atlas acquisitions, Everi expands its footprint in Australia, which is one of the most mature and vibrant gaming markets in the world. The ecash buy also plugs some holes in the Everi portfolio and serves and could potentially be an avenue for market expansion.

“The acquisition will also provide us with an incremental customer base in certain US and other gaming markets we do not currently serve. Everi has never been better positioned as we continue to successfully execute our strategic growth initiatives,” said Everi President and COO Randy Taylor in the statement.

Last year, Fitch Ratings estimated 54 percent of Everi’s EBITDA comes from gaming and 46 percent from fintech. The company’s clients include large commercial and tribal operators.