Everi Holdings has entered the electronic bingo market as it has agreed a deal to acquire assets of Video King for around $59m.
Video King is a tech provider in the electronic bingo space, offering gaming tablets, video gaming content, instant win games and systems to clients.
Expected to close within 60 days, the deal sees Everi take over the “majority” of Video King assets for the $59m fee, with the original private owners to retain a share.
“Over the past several years, we have had great success with executing acquisitions that grow our product capabilities and the markets we serve,” said Randy Taylor, Everi CEO.
“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 with another lever for growth.”
Upon closure, Video King will immediately begin to contribute to Everi’s overall revenue and EBITDA figures going forward. Everi noted that the acquisition will help it to “enable additional growth” in its Gaming business unit.
Video King is licensed in 60 global jurisdictions and will help to expand Everi’s digital gaming content portfolio.
The tech provider generated $25m of revenue in 2022, primarily deriving from recurring revenues from an installed base of over 50,00 electronic bingo tablets in tribal and commercial casinos.
“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 with new enhanced games for our tribal, charitable, and military markets,” said Tim Stuart, CEO and a Co-Founder of Video King.
“The combination of Everi’s games and other digital offerings with our strong electronic bingo base create a unique opportunity to accelerate future growth.”
Everi has been working to expand its footprint in the North American gaming scene this year, both in retail and online scenarios. Last week, it secured an agreement with Churchill Downs to expand the firm’s mobile app for both the Churchill Downs Racetrack and Kentucky Derby.
Meanwhile, it recently announced plans to open a new production facility in Las Vegas to streamline the process, which currently takes place in Austin, Texas.
The acquisition of Video King assets will bolster the company’s footprint even further as it seeks to establish itself as being a “leader” of technology in the industry.
“Video King provides Everi with an expansive new channel to deploy our growing catalog of digital games, 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.
“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.”