Everi to acquire Venuetize assets to expand addressable market

October 4, 2022 11:19 AM

Everi to acquire Venuetize assets to expand addressable market

Photo: Everi's G2E 2021 Booth/CDC Gaming Reports
  • Rege Behe, CDC Gaming Reports
October 4, 2022 11:19 AM
  • Rege Behe, CDC Gaming Reports
  • United States
  • Suppliers

Everi Holdings Tuesday announced an agreement to acquire certain strategic assets of Venuetize.

The deal will expand Everi’s addressable market beyond the casino gaming industry for the first time and broaden its range of mobile capabilities to its established gaming customers.

Venuetize, a privately owned mobile-first technology company, provides advanced guest engagement and m-commerce platform for the sports, entertainment, and hospitality industries.

“This acquisition will, for the first time, expand Everi’s addressable market beyond casino gaming and also perfectly aligns with our capital allocation strategy, which has delivered a track-record of success of executing on high-return accretive investments that expand our technology capabilities into new markets and new geographies,” said Everi President and CEO Randy Taylor in a statement.

“The complementary assets and established customer base of Venuetize being acquired together with our existing financial access and loyalty products are expected to enable further growth into additional entertainment, sports and hospitality venues and also to create new crossover marketing opportunities with our existing customers.”

Venuetize’s technology is live in nearly 100 global venues. The Tampa, Florida-based company has partnerships with more than 50 sports teams and event venues associated with nine pro sports leagues and multiple retail and entertainment districts. Its clients include the PGA Tour, Churchill Downs, TD Garden Hub on Causeway Street, and professional sports teams and venues associated with Major League Baseball, Major League Soccer, the National Basketball Association, National Women’s Soccer League and the National Hockey League.

“I am thrilled at the opportunity to bring our expertise and leading solutions to the evolving mobile landscape in gaming,” said  Venuetize’s Founder and Chief Executive Officer Jon Romm. “The knowledge and experience that our team has gained in delivering seamlessly integrated and complex mobile-first platforms to stadiums and other venues will readily create an encompassing fabric to strengthen guest engagement across any gaming enterprise.”

In addition to expanding Everi’s addressable market into gaming-adjacent industries with more than 185 third-party technology integrations, Venuetize also is expected to accelerate the growth of Everi’s mobile wallet and loyalty offerings with established gaming customers through new mobile products and integrations.

In a statement, Jeffries Equity Analyst David Katz stated that the deal is an opportunity for Everi “beyond casino gaming.

“Our impression from management commentary is that Venuetize currently generates significant revenue, is marginally profitable, and should be accretive to earnings through the NTM,” Katz wrote. “The purchase price is $18M upfront and $2-$6M in performance-based payments.

“The deal furthers the strategy of building its customer engagement capabilities, particularly with respect to payments and loyalty value capture and transfer. This element of the consumer world broadly, as well as within gaming, should create opportunities for Everi, given its positioning within gaming that is based on the ability to transfer money. In short, it adds an element of growth to the company that is not as prevalent in the gaming industry generally.”

The transaction is anticipated to close within 30 days, subject to customary conditions. The acquisition will be funded from existing cash on hand. Following the acquisition of these assets, Venuetize’s experienced team will join Everi.

 

Rege Behe is lead contributor to CDC Gaming Reports. He can be reached at rbehe@cdcgaming.com. Please follow @RegeBehe_exPTR on Twitter.