Everi acquires $59 million of Video King's assets
Everi's recent acquisition of Video King's assets for $59 million has been met with an overwhelmingly positive response and means that Everi are now the majority owners of the company.
The privately owned electronic bingo gaming device and systems provider generated over $25 million in revenue last year and owns an installed base of 50,000 portable electronic bingo tablets, in various locations such as tribal and commercial casinos, bingo halls, military bases, and even cruise lines.
CEO Randy Taylor believes this acquisition will immediately boost adjusted EBITDA and free cash flow, while also elevating Elevi’s existing offerings and provide new avenues of growth. The acquisition will be funded with existing cash on hand and is set to close within 60 days.
The acquisition of Video King by Everi is set to have a significant impact on the digital gaming market, bigger than expected. Everi's digital gaming content will have a wider audience as 20% of Video King's portable tablets may offer more options like traditional bingo games, Class II video poker, slots, and instant win games. Additionally, customers can use digital wallets and loyalty products. David Bain, of B Riley, estimates this is worth $1.25 per unit per day, with Video King receiving a flat monthly rental fee plus a percentage of game play. And says that as players enjoy the newer, faster games, that electronic bingo may soon be a thing of the past. This acquisition is poised to be a game-changer in the industry.