Under the deal, which is expected to complete within 60 days, Everi will take ownership of the majority of Video King’s assets and will fund the purchase using existing cash on hand.
Everi said the acquisition would provide the business with complementary assets and an established customer base to enable additional growth in its games segment.
Video King is currently licensed in approximately 60 jurisdictions, and, subject to regulatory requirements, 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.
The provider’s installed base of more than 50,000 portable electronic bingo tablets covers tribal casinos, commercial casinos, charitable bingo halls, military bases and cruise lines.
“Over the past several years, we have had great success with executing on acquisitions that grow our product capabilities and the markets we serve,” Everi chief executive Randy Taylor said. “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.”
Video King co-founder and chief executive Tim Stuart added: “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.
“The combination of Everi’s games and other digital offerings with our strong electronic bingo base create a unique opportunity to accelerate future growth.”
Relocation
The deal comes after Everi last month announced that it would cease the manufacturing of gaming machines in Texas and consolidate production at a new facility in Las Vegas, Nevada.
The provider already manufactures its self-service fully integrated cash access kiosks, loyalty kiosks and other FinTech products in Las Vegas, with this production, assembly and distribution to also be relocated to the new site.