Everi-IGT Merger Boosts Outlook, Fitch Maintains Rating

Fitch Ratings has reaffirmed Everi Holdings’ BB- long-term issuer default rating, highlighting that the company is on track to emerge stronger following its upcoming merger with International Game Technology (IGT). 

At the end of March, Fitch also reaffirmed MGM Resorts’ BB-rating, reflecting the company’s EBITDA leverage.  

Positive Outlook for Everi

The ratings agency that offers forward-looking credit opinions has cited Everi’s expanded scale, broader product offerings, and significant cost synergies as key factors in its positive outlook.

While Fitch does forecast a 3.4% dip in Everi’s revenue for 2025 due to short-term softness in gaming operations, it expects growth to return in the years following the merger. 

“The combined entity generated 2024 pro forma revenue and adjusted EBITDA of $2.6bn and $1.1bn, respectively,” Fitch noted. 

With around 70,000 gaming units in the field, the merger would give the new entity a larger installed base than competitors like Light & Wonder, which currently stands at 54,397 units.

“The merger should enable more cross-selling opportunities between the two entities,” Fitch added. 

It also gives the company a competitive edge in the slots market in North America, potentially going past current leaders Light & Wonder and Aristocrat Leisure.

“Mid-Single-Digit Revenue Growth Through 2026” 

The merger agreement, reached on July 26, 2024, sees both IGT’s gaming division and Everi acquired by Voyager Parent, LLC in an all-cash deal. 

The result will be a unified company with reach across land-based casinos, iGaming, sports betting, and financial technology.

Fitch highlighted the broad revenue mix the new company will offer: 29% from gaming operations, 23% each from gaming sales and systems/software, 15% from FinTech, and 10% from digital. 

“Management estimates mid-single-digit revenue growth through 2026 based on current business plans,” the agency said.

Additional growth is expected to come from combining Everi’s digital content with IGT’s distribution network, introducing FinTech products internationally, and expanding IGT’s games into the Class II market.

“Management expects $140m in run-rate cost synergies to be realized by the third year,” Fitch reported. 

These will come from areas such as supply chain efficiencies, operational streamlining, and facility consolidation. Another $20 million in annual capex savings is also expected.

While the merged company’s financials are still smaller than Light & Wonder or Aristocrat, Fitch sees Everi’s FinTech division as a unique growth lever, especially with IGT’s strong global sales force.