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The deal is expected to expand Everi’s (EVRI) addressable market beyond casino clients.
Analyst Edward Engel: “With the acquisition, Everi can better cross-sell casino customers by offering mobile wallet and loyalty capabilities beyond the casino floor. Yet the acquisition also offers Everi an opportunity to expand its client base beyond casinos, particularly stadiums and racetracks with sportsbook and racebook operations.”
With the acquisition, Everi will retain Venuetize’s tech, personnel and 50+ customers. The deal is not anticipated to materially impact EVRI’s revenue or EBITDA in 2022.
Engel also thinks Everi’s acquisition of Venuetize will allow it to offer mobile wallet and loyalty capabilities comparable to industry leaders like MGM and Caesars. The acquisition also expands EVRI’s client base to non-casino entities looking to integrate gaming solutions. The wider base of non-casino clients should significantly expand Everi’s target market, both within and outside the U.S.
Roth Capital Markets has a Buy rating on EVRI and 12-month price target of $24.
Jefferies was also positive on the deal for EVRI, saying that it adds an element of growth to the company that is not as prevalent in the gaming industry generally.
Shares of EVRI rose 1.62% in premarket trading on Wednesday to $18.20 to add to Tuesday’s 7.70% pop.
Read more about the Venuetize deal.
Image and article originally from seekingalpha.com. Read the original article here.