Casino tech firm Everi to acquire Australia’s Atlas Gaming
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Mergers and acquisitions are functional parts of the business world and corporate finance. To accelerate growth and developments, two companies would sometimes come together to form an entirely new single entity. In other cases, a larger company can simply acquire a smaller company and absorb its business. This is exactly the case of Everi and Atlas Gaming – an acquisition.
Financial technology (Fintech) supplier Everi Holdings Inc, a primary player in digital casino products is set to acquire a leading-edge software gaming platform, Atlas casino. The sole aim of the acquisition is to expand Everi further into international markets. However, the acquisition is not without its backstory.
· Everi will benefit from Atlas gaming’s local expertise since slots in Australia and the United States differ in operating system protocols.
· Everi will acquire strategic assets and will retain key members of Atlas.
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· The deal is scheduled to be completed within 60 days after the announcement.
· The acquisition will aid Everi to penetrate the Australian market where Atlas has already established a solid geographical footprint.
The two parties in the acquisition
Everi Holdings
Everi Holdings Inc is a casino equipment maker and financial knowledge provider based in the United States. The deal to acquire Atlas was announced in December as part of the company’s plan to restructure its marketing and leadership team.
The purpose of the acquisition
Everi announced its agreement with Atlas to acquire some of its strategic assets, majorly intellectual property and technology development. Both companies have agreed to close the deal by March. The acquisition is expected to provide a pathway for Everi to expand into new international markets in the future.
Atlas is a major casino player in the North American market with substantial market share gains and an established geographical footprint. Therefore, we believe an acquisition at this time will give Everi a deserving introduction into the Australia slot marketplace.
The Australian online casino and slot market are the second-largest in the world in terms of the total share of the global market, including free Aussie pokies and poker. Everi will also benefit from the difference between the operating system protocols of the two countries. Apart from this, an acquisition of an Atlas gaming server will improve Everi slot machines.
Atlas Gaming
Atlas Gaming is a Victoria-based gaming company based in Melbourne. The gaming company is a renowned software gaming platform and opened its North American headquarters in 2021 in Las Vegas. Australia’s atlas gaming has its house-developed slots licensed in North America and Australia and features the Giant Spin mechanic that multiplies the player’s chance at winning a jackpot by two. According to the company, it has developed a renowned and leading software gaming platform that provides any technical solution that is required to create a gaming product.
Payment and finalization
Although the initial press release did not state the official amount of the acquisition, brokerage B. Riley Securities Inc predicts that the price is in the mid-single-digit million United States Dollar range. Apart from this, Everi has decided that it will finance the deal with the cash it has on hand.
The lucrativeness of the deal
Australia has a sizable market for slots, like online pokies in Adelaide and others. However, the short-term effect of the acquisition is unlikely to change much. In other words, the acquisition by Everi will make a little significant impact on its financial results in the coming months. However, Everi is expected to start reaping returns of its acquisition and online casino activities from 2023 through 2025.
Terms and conditions
Everi explained that staff from Atlas‘s engineering and development will join its team. It plans to retain key members that will help the company transition and run future operations with ease. The company’s games business leader and executive vice president, Dean Ehrlich, announced that the company looks forward to Atlas game engineers and developers bringing a broader perspective to the entire relationship.
According to him, Atlas will help provide support for Everi’s growth strategies and help to execute a robust product road map. Apart from this, the transaction also strengthens Everi’s development capabilities, its chances of differentiating its gaming products, and increases the chances of future expansion.
According to Dean, Everi will seek to capitalize on Atlas’s purchased assets and development team to create and provide original content for its current customer base. It will do this while still creating more opportunities to penetrate the current Australian markets that Atlas currently serves. By diversifying development and growth outside North America, Atlas will help frame Everi’s long term growth.
Not the first Rodeo Everi has been on
Everi acquired some strategic assets of Meter Image Capturing in early October of last year. Meter Image capturing provides the gambling sector with progressive meter reporting. With the company’s experience in corporate finance and acquisition, we can only anticipate and expect the best from the relationship.
