Everi plans to acquire major assets in Video King

The premier provider of digital and land-based casino gaming content and products, player loyalty solutions and financial technology, Everi Holdings, announced a new acquisition, seeking to further boost its reach and expand its global footprint. The company confirmed Tuesday entered into a purchase agreement to acquire certain assets from the privately-owned leading provider of integrated electronic bingo gaming tablets, instant win games, video gaming content and systems, VKGS LLC (Video King).

In a deal with a price tag of $59 million, Everi anticipates acquiring a majority of the assets in Video King. The sum will be payable upon closing of the acquisition, which is also "subject to customary net working capital adjustments," a statement released by Everi reveals. The company anticipates closing the transaction within 60 days. Upon closing of the acquisition, Everi confirmed it expects to see an immediate impact on its Free Cash Flow, as well as its adjusted EBITDA.

Tim Stuart, Video King's Chief Executive Officer and co-founder, said about the latest announcement: "We are confident that as part of Everi, Video King will be in a very strong position to expand our product offerings to provide our long-time loyal customer base new enhanced games for our tribal, charitable and military markets." Finally, he explained: "The combination of Everi's games and other digital offerings with our strong electronic bingo base create a unique opportunity to accelerate future growth."

Thanks to the acquisition of major assets in Video King, Everi expects to tap into an already established customer base, along with complimentary assets. Ultimately, this acquisition is expected to significantly boost the company's Games segment. Video King is currently licensed in approximately 60 jurisdictions and this presence is expected to expand the reach of Everi's unique digital content and payment solutions.

Everi estimates that approximately 20% of Video King's established base of portable e-gaming tablets may be able to benefit from its solutions such as slots, Class II video poker, instant win games, loyalty products and its digital wallet. Still, it's important to mention that such launches are subject to regulatory requirements.

Tim Richards, Everi's Executive Vice President, Chief Strategy and Digital Officer, was also excited about the acquisition. He noted: "Video King provides Everi with an expansive new channel to deploy our growing catalog of digital iGames, as well as enhance the player experience by incorporating our digital wallet and loyalty products, while adding a new source to generate recurring revenue."

Last but not least, Richards pointed out: "With an expanding demographic audience looking to engage in increased social and leisure activities, we see a significant opportunity to collaborate with the Video King team to develop new gaming content and play enhancements to optimize player engagement and drive increased customer traffic."

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