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Las Vegas-based Everi Holdings Inc., a provider of land-based and digital casino gaming content and products, financial technology and player loyalty solutions, announced that it has entered into a purchase agreement to acquire certain assets of VKGS LLC (Video King).
Video King is a privately-owned provider of integrated electronic bingo gaming tablets, video gaming content, instant win games, and systems.
The deal was for cash consideration of $59 million to be paid at closing, subject to customary net working capital adjustments. Everi expects to complete the transaction within 60 days.
“Currently licensed in approximately 60 jurisdictions, Video King is expected to expand the addressable market for Everi’s player-popular digital gaming content […] an estimated 20% of Video King’s installed base of portable e-gaming tablets may be enabled to provide players with traditional bingo games and Class II video poker, slots and instant win games, as well as with a digital wallet and loyalty products,” Everi said in a statement.
Video King generated revenue of more than $25 million in 2022.
“Over the past several years, we have had great success executing on acquisitions that grow our product capabilities and the markets we serve,” said Randy Taylor, Everi’s Chief Executive Officer. “During this time, we have established a track record of successfully scaling up acquisitions that have delivered an attractive return on investment and helped drive strong cash flow. We are highly confident that by helping to elevate our current Games, FinTech and Digital solutions with and adjacent to our established customer base, the acquisition of Video King will meet those same criteria and offer Everi another lever for growth.”
“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,” said Tim Richards, Everi Executive Vice President, Chief Strategy and Digital Officer.
“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,” said Tim Stuart, Chief Executive Officer and a co-founder of Video King. “The combination of Everi’s games and other digital offerings with our strong electronic bingo base creates a unique opportunity to accelerate future growth.”
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