Everi Holdings has acquired Australia-based gaming industry payment solutions provider Ecash Holdings in a deal worth up to AU$43m ($30.4m/€26.7m/£22.5m).
The provider of financial technology, gaming content and player loyalty solutions said Ecash’s products and technologies represent a strategic extension of its current suite of financial technology solutions.
Everi added that the acquisition will provide it with a complementary portfolio of new customer locations throughout Australia, the US and other geographies.
Las Vegas-headquartered Everi will acquire Ecash for guaranteed payments totalling AU$33m, with an initial payment at the time of closing of AU$20m, with the remaining two payments to be made in 2023 and 2024. Subject to achieving certain growth targets, there will be an additional contingent payment of up to AU$10m.
Everi said it expects to fund the total purchase price from existing cash on hand and future cash flow. The closing of the transaction, subject to customary conditions, is expected to occur within 60 days.
“We are pleased to enter into this agreement to acquire Ecash and welcome their entire team to Everi upon the closing of the transaction,” said Randy Taylor, Everi’s president and chief operating officer.
“Ecash is a strategic addition to our growing global portfolio that will provide Everi with an entry into the large Australian gaming market thanks to their experienced team, proven product portfolio and established customer base.
“The acquisition will also provide us with an incremental customer base in certain US and other gaming markets we do not currently serve. Everi has never been better positioned as we continue to successfully execute our strategic growth initiatives.”
Andre Soussa, chief executive of New South Wales-headquartered Ecash, will become Everi’s managing director for Australia following the completion of the deal.
Soussa said: “We are thrilled by the opportunity to join the gaming industry’s fintech leader. By integrating Ecash’s current products and markets with Everi’s offerings, we will be able to add value across a much wider range of clients and unlock exciting new growth opportunities along the way.”
Last year, Everi acquired strategic assets of Meter Image Capturing (MIC), a provider of progressive meter reporting solutions to the gambling sector. Everi confirmed it funded the acquisition from existing cash on hand and that it expects the purchase to be accretive to earnings and operating cash flow.
Everi revealed a record performance by its gaming business during the third quarter of its 2021 financial year helped drive group revenue up 49.7%.
Total revenue for the three months through to the end of September amounted to $168.3m, up from $112.4m in the third quarter of 2020, during which Everi said it was significantly impacted by the novel coronavirus (Covid-19) pandemic.
Pre-tax profit rocketed 671.6% from $833,000 to $6.4m, while adjusted earnings before interest, tax, depreciation and amortization (EBITDA) was 51.5% higher at $90.6m.