Everi Holdings agrees to purchase Australia-based Atlas Gaming

The gaming industry constantly sees a flurry of activity in the mergers and acquisition area. The latest comes through Everi Holdings, which looked to Australia to expand its reach.

US-based Everi, a casino equipment manufacturer and supplier of financial technology, says it plans to acquire "strategic assets" of Australia's Atlas Gaming group and retain members of its target's "experienced staff."

Atlas Gaming, a Melbourne-based software gaming company, has created what it calls a "world-class and leading-edge platform for software gaming." The target company also has an office located in Las Vegas, Nevada, in the US.

According to a Tuesday press release, Everi will be acquiring assets, including game development technology and intellectual property, from Atlas Gaming Pty Ltd and Atlas Gaming Technologies Pty Ltd.

Everi stated that the acquisition will be completed within 60 days.

According to Everi, the company's current game development studios and games portfolio will be strengthened through the acquisition. It added that it would provide a path for future expansion into international markets.

Everi will be joined by staff from Atlas Gaming's engineering and development team, according to the latter. It stated that Everi will finance the acquisition using existing cash.

The deal's financial consideration was not disclosed in the press release. However, B. Riley Securities Inc stated Tuesday in a separate note that it believes the purchase price was within the "mid-single-digit million-U.S. dollar range."

Everi's executive vice president, Dean Ehrlich, was quoted as saying that the company would use the Atlas development team and purchase assets "to provide more original content for our current customer base while creating an opportunity to further penetrate the markets Atlas has historically served, including Australia."

B. Riley analyst David Bain stated that Everi would gain a "solid studio presence" to establish a foothold in Australia's slot-machine market. It is the second-largest worldwide, after North America. Bain pointed out that Australian slots use "different operating systems protocols" to those used in North America.

The brokerage's note stated that Atlas is unlikely to be financially significant to Everi 2022 estimates. However, it helps to frame longer-term development and marks a milestone for the company by diversifying growth outside North America.

Everi Holdings was formed in 2015 by the merger of gaming supplier Multimedia Games and financial services company Global Cash Access. It processes more than 100 million cash transactions annually. The company provides a range of financial services to its customers, including credit and debit transaction optimization and money laundering protection.

Everi's entertainment division also creates gaming content through its three studios, as well as provides gaming cabinets and systems.

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