- Legal States
Fiona Simmons January 12, 2022 3 min read
Everi Buys Atlas Gaming Assets for Toehold in Australian Slot Market
Everi Holdings, a US-based casino and gaming equipment manufacturer, is set to acquire what it has described as strategic assets from Australia-based iGaming developer Atlas Gaming. In doing so, Everi will retain key team members who will help the company with the transition as well as the future running of operations.
Atlas Gaming’s Software and Industry Nous Are Valued
Atlas Gaming is credited with developing ground-breaking iGaming software, which allows customers to expand in gaming owing to the company’s cutting-edge platform. Everi will be acquiring assets from Atlas Gaming Pty Ltd and Atlas Gaming Technologies Pty Ltd that have to do with gaming development technology and other intellectual assets that will be transferred to the buyer.
The deal is slated to be completed by the end of March, or within 60 days of the announcement, the company confirmed in a press release on Tuesday. Everi will use existing cash on hand to fund the deal, although no financial considerations were readily offered at press time.
Commenting on the deal, brokerage B. Riley Securities Inc. said that the deal should easily exceed one million US dollars, but no specific numbers were offered. Everi executive vice president Dean Ehrlich argued that the new assets acquired from Atlas Gaming would allow the company to establish itself in the iGaming space and gain the necessary foothold to develop original content and deliver on impactful experiences for the end customer.
The acquisition will also allow Everi to achieve further market penetration, including in Australia, owing to Atlas Gaming’s own established geographical footprint. David Brian from B. Riley Securities will be a great point of entry for Everi into the Australian market, to begin with.
Entering the Highly Lucrative Australian Market
Australia currently has a sizable market share when it comes to slots, colloquially known as “pokies” in the country. In fact, Australia is second only to the United States in terms of the total share of the global slot market. This, estimates Brian, would have a particularly strong impact on Everi’s bottom line in the long-term following the deal’s finalization.
However, Brian noted that the short-term results for the company are unlikely to change much, as the Atlas Gaming acquisition will not make a significant impact on the financial results in 2022. Brian estimates that the earliest the acquisition begins to pay off is in the period from 2023 through 2025.
Everi will also benefit from Atlas Gaming’s local expertise as slots in the United States and Australia differ when it comes to operating system protocols.