Global gaming and financial equipment supplier Everi Holdings Inc has announced the acquisition of casino loyalty and marketing solutions firm Atrient.
Everi revealed the news while announcing its 4Q18 financial results, which saw the company record a 10th consecutive quarter of revenue and Adjusted EBITDA growth.
The US$40 billion transaction, comprising an immediate US$20 million cash payment with the balance to be paid within two years, sees Everi acquire assets including “existing technology related to self-service kiosks and a marketing platform as well as other intellectual property.
“The company also acquired a portfolio of over 50 customer contracts representing over 100 casino locations where the platform is currently installed that provide a stream of high-margin recurring revenue related to software maintenance and support,” it said.
Everi returned to profit in 4Q18, with net income improving to US$4.2 million from a loss of US$25 million in the prior year period on the back of a 13.8% increase in revenue to US$119.5 million. Adjusted EBITDA climbed 6.4% to US$54.6 million.
The company’s Games segment booked the strongest growth, with revenue up 18.4% to US$67 million, while the FinTech segment grew 8.5% to US$52.5 million.
Speaking of the Atrient acquisition, Everi President and CEO Michael Rumbolz said,“Our ability to integrate this robust player loyalty platform with our payment solutions and growing compliance suite through our already powerful proprietary network further differentiates our comprehensive offerings and enhances the overall value proposition of the FinTech services we provide to our customers.
“We believe this attractive tuck-in acquisition fits perfectly into our strategy of delivering products and services that are focused on improving the guest experience, growing our FinTech transactional base and creating operating efficiencies for our customers.”