Everi Payments Inc., a subsidiary of Las Vegas-based gaming equipment producer Everi Holdings Inc. (NYSE: EVRI) has acquired Micro Gaming Technologies Inc., a company that specializes in casino loyalty and marketing software.
The small privately held company has since it was incorporated in 1999 been designing and developing applications for the casino industry including its flagship product, the MGT Promotional Intelligence Suite (MGT Promo).
According to the Monday announcement, the deal is “expected to be immediately accretive to earnings and Adjusted EBITDA,” and enable Everi to enhance its marketing and loyalty products by further increasing its financial technology portfolio.
Under the terms of the agreement, certain assets of MGT were acquired by Everi for an up-front payment of $15 million, with an additional $5 million payable on the 1st of April 2020 and $5 million on the 24th of December the following year. Everi reportedly expects to bankroll the acquisition using a combination of existing cash and future revenues.
According to an official press release, Executive Vice President and FinTech Business Leader for Everi, Darren Simmons, said…
“The acquisition of the MGT assets will further strengthen our ability to provide our customers with a one-stop shop of comprehensive, integrated solutions that enable a seamless, convenient experience for casino patrons while delivering operational efficiencies for casino operators. By combining our existing Everi player loyalty and marketing solutions with these assets from MGT, we will be better positioned to offer our customers the industry’s most extensive suite of loyalty and marketing technology. We have already begun the process of developing a roadmap for integrating the best functionality of MGT’s platform with the best of our existing loyalty and FinTech suite of products and services with an eye towards further strengthening our overall solution set.
“We see a significant opportunity for growth in the player loyalty market and the planned acquisition of the MGT assets represents a significant step forward in our goal to establish loyalty and marketing-based services as a meaningful growth driver for our business. In addition, combining the product capabilities of MGT’s solutions with our innovative existing and planned FinTech digital products will help accelerate the development and commercialization of our ‘Digital Neighborhood.’ We are extremely focused on driving our vision of providing seamless, integrated, real-time, self-service connections that offer our casino customers the ability to aggregate a guest’s interactions providing for a 360-degree view of their spending patterns within the casino enterprise.”
According to MGT’s website, in May 2018 the firm partnered with Reno-based casino-entertainment company Eldorado Resorts, Inc. (NASDAQ: ERI) becoming the promotional kiosk solution for all of its [Eldorado] locations. The deal reportedly increasing its market share to more than 280 casinos and MGT’s casino clients to represent over 40 percent of the U.S. gaming market based on slot count.