Everi Holdings Acquires Micro Gaming Technologies
Everi Holdings, provider of payment systems and gaming machines has purchased privately held Micro Gaming Technologies for $25 million. This significant purchase is in line with the company’s journey to shore up its portfolio. Everi Holdings will pay $15 million upfront with the other $5 million due in April 2020, while in December 2021, Everi will pay $5 million.
The company revealed that they foresee huge amounts of growth. Everi Holdings seeks to become a key player in the market. According to an executive at Everi, the acquisition of the MGT assets represents a momentous step forward. The company has a goal to establish marketing-based and loyalty services. Everi shares increased to 158.48 percent year-to-date. This makes the stock one of the most accomplished start-up gaming companies in 2019.
Everi Holdings Performance Breakdown
In December 2019, Everi Holdings sold shares of stock worth 10 million. The net proceeds from the process came to $107 million. Market analysts were impressed by the company’s move. $30 million of the proceedings would be used to repay some senior notes as well as decrease an unsettled term loan. This will save the company close to $10 million in annual interest expenses. According to Everi, the acquisition of MGT confirms the company’s demand to be positioned as a Fintech business.
Analysts say the deal by Everi has accomplished two important items. These support additional share price appreciation over the intermediate-to-longer term.
About Micro Gaming Technologies
They build kiosk software, hardware as well as computer programs used to run virtual raffles and drawings. MGT designs promo kiosks that increase player loyalty, reduce marketing costs in all casino promotions, increase participation amongst other things.