LAS VEGAS - Everi Holdings Inc. (NYSE:EVRI), a provider of gaming and financial technology solutions, has successfully cleared a significant regulatory hurdle in its proposed transaction with International Game Technology PLC (NYSE:IGT) and entities managed by affiliates of Apollo Global Management (NYSE:APO), Inc. The Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act) waiting period expired on November 20, 2024, bringing the deal one step closer to completion.
The transaction, initially disclosed on July 26, 2024, involves the simultaneous acquisition of Everi and IGT’s Gaming & Digital business by a newly formed holding company owned by funds managed by affiliates of Apollo Global Management. This strategic move is subject to customary closing conditions and remaining regulatory approvals.
Everi's business focus spans across miscellaneous amusement and recreation services, and its headquarters are located in Las Vegas, Nevada. The company, incorporated in Delaware, operates under the fiscal year ending December 31.
The forward-looking statements included in the SEC filing indicate that the completion of the proposed transaction is still subject to various conditions, including obtaining necessary gaming and regulatory approvals. The company cautions that there can be no assurance the transaction will be consummated and advises investors not to place undue reliance on these forward-looking statements.
Everi's stockholders are reminded that if the transaction is finalized, they will no longer have an equity interest in the company and will not have rights to participate in its future earnings or growth. The company's management has not indicated any plans to update forward-looking statements unless required by law.
This news is based on a press release statement and provides an overview of the key facts surrounding Everi Holdings Inc.'s current status in the ongoing acquisition process. The company's shares are publicly traded on the New York Stock Exchange under the ticker symbol EVRI.
In other recent news, Everi Holdings has seen significant developments. B.Riley has maintained a Neutral rating on Everi Holdings, adjusting its EBITDA estimates for 2024 and 2025 to $325.4 million and $346.9 million, respectively. This revision reflects a cautious stance due to potential delays in product transitions within Everi's games business, particularly in anticipation of Everi's upcoming merger with International Game Technology's games division.
Everi's stock rating was downgraded by Stifel from Buy to Hold following the announcement of its acquisition by Apollo Global Management for $14.25 per share. Concurrently, Everi has announced plans to merge with International Game Technology's Global Gaming and Play Digital businesses, aiming to enhance product offerings and expand market presence.
In the wake of the acquisition announcement, Raymond (NS:RYMD) James adjusted Everi's stock rating from a 'Strong Buy' to a 'Market Perform' status. Everi's first-quarter results revealed a decrease in its Games segment but growth in its Fintech cash access services, with adjusted EBITDA falling to $80.3 million. However, the company anticipates revenue growth and a return to growth in Fintech revenues in the second half of 2024. These are the recent developments for Everi Holdings.
InvestingPro Insights
As Everi Holdings Inc. (NYSE:EVRI) progresses through its proposed transaction with IGT and Apollo Global Management, recent InvestingPro data offers additional context for investors. The company's market capitalization stands at $1.15 billion, with a price-to-earnings ratio of 50.0 over the last twelve months as of Q3 2024. This relatively high P/E ratio suggests that investors are pricing in future growth expectations, which aligns with the ongoing strategic transaction.
InvestingPro Tips highlight Everi's impressive gross profit margins, which are reflected in the data showing a gross profit margin of 80.04% for the last twelve months. This strong profitability metric underscores the company's operational efficiency in its gaming and financial technology solutions business.
Another relevant InvestingPro Tip notes that Everi's stock is trading near its 52-week high, with the current price at 99.18% of the 52-week high. This performance indicates investor optimism surrounding the company, possibly influenced by the pending transaction and its potential to create value.
For readers interested in a more comprehensive analysis, InvestingPro offers 8 additional tips for Everi Holdings, providing a deeper understanding of the company's financial health and market position.
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