Everi Holdings Monday announced it has reached an agreement to acquire Ecash Holdings, an Australian-based developer of cash handling and payment solutions. The deal gives the Las Vegas-based gaming developer and cash solutions provider access to a portfolio of customer locations in Australia, the U.S., and other global locales.
“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 Everi President and Chief Operating Officer Randy Taylor in a statement. “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 U.S. and other gaming markets we do not currently serve.”
The acquisition will total AU$33 million, with an initial payment of at the time of closing of AUD$20 million (approximately US$14 million). The remaining payments will be made on Feb. 7, 2023 and Feb. 7, 2024.
If undisclosed growth targets are met, there will be an additional contingent payment of up to AUD$10 million, which could increase the total consideration up to AUD$43 million.
“We are thrilled by the opportunity to join the gaming industry’s FinTech leader,” said Ecash CEO Andre Sousa in a statement. “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.”
Subsequent to closing, Soussa will become Everi’s Managing Director, Australia.
Everi expects to fund the total purchase price from existing cash on hand and future cash flow.
“The integration of Ecash into our robust FinTech portfolio and ability to scale this complementary business represents a significant opportunity to further expand our leadership position in the space and further diversify the markets we serve,” said Everi Executive Vice President and FinTech Business Leader Darren Simmons in a statement. “We also expect that several of our FinTech and RegTech products, such as our Trilogy Loyalty solutions and Anti-Money Laundering software, will have applicability and add value for Australian gaming operators.”
According to Truist Securities analyst Barry Jonas, the acquisition gives Everi scale in the Australian Fintech space and offers the company an opportunity to introduce complementary software products. Jonas added that ecash not only adds new customers for Everi in Australia, but also in the US and other countries.
“We think international expansion (Australia is the second largest gaming market) is a natural growth strategy for Everi as it seeks to move beyond a historically smaller domestic positioning to a leading global player, ” Jonas wrote.
