Las Vegas-based Everi Holdings Inc., a provider of land-based and digital casino gaming products and content, financial technology and player retention solutions, announced it has entered into a purchase agreement to acquire certain VKG LLC (King of videos).
Video King is a privately held supplier of tablets for integrated electronic bingo games, video game content, instant win games and systems.
The agreement provided for a cash consideration of $59 million to be paid at closing, subject to customary net working capital adjustments. Everi expects to complete the transaction within 60 days.
“Currently licensed in approximately 60 jurisdictions, Video King is expected to expand the addressable market for Everi’s popular digital gaming content […] an estimated 20% of Video King’s portable e-gaming tablet installed base could be enabled to provide players with Class II traditional bingo and video poker games, slots and instant win games, as well as a digital wallet and loyalty products,” Everi said in a statement.
Video King generated over $25 million in revenue in 2022.
“In recent years, we have had great success executing acquisitions that have grown our product capabilities and the markets we serve,” said Randy Taylor, chief executive officer of Everi. “During this period, we have established a track record of successful acquisitions that have delivered an attractive return on investment and helped generate strong cash flow. We are very confident that by helping to elevate our existing gaming, FinTech and digital solutions with and adjacent to our established customer base, the acquisition of Video King will meet the same criteria and offer Everi another lever for growth.” .
“Video King provides Everi with an expansive new channel to deploy our growing catalog of digital iGames, as well as enhance the player experience by incorporating our digital portfolio and loyalty products while adding a new source to generate recurring revenue,” said Tim Richards , Everi Executive Vice President, Chief Strategy and Digital Officer.
“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 longtime loyal customers with new and improved games for our tribal, charity and military markets,” he said. said Tim Stuart, CEO and co-founder of Video King. “Combining Everi’s games and other digital offerings with our strong electronic bingo foundation creates a unique opportunity to accelerate future growth.”