Everi Holdings Tuesday announced the acquisition of Intuicode Gaming Company, a game developer and engineering firm focused on historical horse racing games.
The acquisition cost includes an initial payment of $12.5 million, with two additional payments based on future revenue due on each of the first and second anniversaries of the acquisition’s closing in 2023 and 2024. Total consideration is expected to be between $22 million and $27 million.
Everi expects to fund the purchase from existing cash on hand and future cash flow.
“This acquisition is a significant opportunity that brings substantial HHR knowledge and game development expertise to Everi that we expect will help expedite the development and commercialization of our extensive library of content into the HHR market and favorably position us for future growth,” said Everi Executive Vice President and Games Business Leader Dean Ehrlich in a statement. “We are excited to welcome members of the Intuicode team to Everi, and we look forward to combining our respective strengths to develop new content as well as convert our proven, player-popular games to address the growing HHR market.”
Based in Florida, Intuicode generates over $10 million in annual revenue from the sale of gaming machines and recurring participation revenue from game theme placements at HHR locations throughout the United States. Intuicode’s experienced HHR game development team gives Everi additional HHR expertise that will help the company accelerate its entry into and growth in the expanding HHR market.
Truist Securities analyst Barry Jonas wrote in an analyst’s statement that the acquisition price is relatively inexpensive and “in-line with Everi’s recent M&A approach, namely small deals to extend its product offerings/geographies with likely synergies in moving to Everi’s larger platform. We await more details during Everi’s Q1 earnings next week (May 10) and reiterate our Buy rating.”
