Tuesday, Everi announced it is acquiring key components of Atlas Gaming and Atlas Gaming Technologies, an Australia-based developer and provider of proprietary gaming content and products.
Expected the close within 60 days, the deal will see Everi acquire certain strategic assets, including game development technology and intellectual property, and Atlas development and engineering team members will join Everi. Everi will fund the acquisition from existing cash on hand.
Everi expects the acquisition to “complement its existing game development studios and portfolio of games while providing a pathway for future expansion into new international markets,” the company said in today’s release.
“We believe Atlas gives Everi a solid studio presence for an initial toehold into the Australia slot-marketplace (second in size only to North America). It also diversifies EVRI’s game development for continued N. America market share gains, in our view,” said David Bain, analyst with B Riley Securities.
“While unlikely financially significant to Everi’s 2022, we believe Atlas helps frame longer-term growth (2023-2025) and represents a company milestone by diversifying growth and development outside North America. Australia’s 200k slot market compares to North America’s 1 million. Australia runs on different operating system protocols, which Atlas has successfully interfaced with. In essence, Atlas forms the core entry point for EVRI into Australia (inexpensively accomplished, in our view),” Bain added.
Dean Ehrlich, Everi’s Executive Vice President and Games Business Leader, said, “We are excited to welcome members of the talented and experienced Atlas team to Everi. We look forward to Atlas’ game developers and engineers bringing a global perspective that will help us execute a more robust product roadmap and support our growth strategy of delivering best-in-class content. This transaction strengthens Everi’s development capabilities and will further bolster the future expansion and differentiation of our gaming products. We expect to leverage the Atlas development team and purchased assets to provide more original content for our current customer base while creating an opportunity to further penetrate the markets Atlas has historically served, including Australia.”
Atlas Gaming is based in Melbourne, Australia and opened a North American headquarters in 2021 in Las Vegas. Its house-developed slots, licensed in Australia and North America, feature the Giant Spin mechanic which doubles the player’s chance at winning a jackpot. According to the company, it has developed a “brand new world class, leading edge software gaming platform that offers all the technical solutions required to create any gaming product.” Atlas Gaming’s current chief executive officer is Geoffrey McDowell who joined the company as CEO in January 2018.
