Everi Holdings Inc. (NYSE: EVRI), a provider of land-based and digital casino gaming content and products, financial technology and player loyalty solutions, acquired some strategic assets of XUVI, LLC, a private provider of marketing platform.
The financial terms of the deal, which was funded from existing cash on hand, were not disclosed.
Based in Las Vegas, NV- and Chennai, India, XUVI provides a marketing platform designed to evaluate, target and engage customers to increase loyalty through data analytics utilizing customer behaviors and AI. The company’s platform, called BEAMSTUDIO, combines historical and behavioral propensity data to assign a customer’s future value based on their unique characteristics and behaviors. The technology provides real-time predictive and actionable insights to augment marketing with targeted campaigns focused on valued customers, increases operating efficiencies through data analytics and automation of routine marketing tasks, and optimizes marketing spend by reducing over and under-reinvestment.
BEAMSTUDIO is expected to enhance Everi’s QuikMarketing capabilities and leverage consumer data to assist casino marketers and deliver intelligent interactions across all channels and act as the foundation for targeted and cost-effective campaigns to acquire new patrons and strengthen existing customer relationships with precise insight.
XUVI also provides SPENDSCORE, which is a single number that represents the future value of a customer based on their unique characteristics and behaviors. Created using multi-dimensional behavioral data models that analyze each person’s historic, demographic and psychographic data, the resulting SPENDSCORE reflects each customer’s future engagement value to user’s operations and helps users direct marketing expenditures to individuals most likely to respond. As such, a group of customers having the same SPENDSCORE are considered to have similar spend propensity and engagement behaviors.
Formed through the merger of Global Cash Access, Inc. (GCA) and Multimedia Games, Inc. (MGAM), headquartered in Las Vegas, and led by Michael Rumbolz, Chief Executive Officer, Everi provides casino customers with solutions to do business via entertaining game content and gaming machines, gaming systems, and services for land-based and iGaming operators operating legal online gambling in the US. The company is also a provider of financial technology solutions that power the casino floor while improving operational efficiencies and fulfilling regulatory compliance requirements, including products and services that facilitate convenient and secure cash and cashless financial transactions, self-service player loyalty tools and applications, and regulatory and intelligence software.
In March, the company released its financial results. In 2021, revenues rose 72% to $660.4m compared to $383.7m in 2020, and exceeded the prior record year achieved in 2019 by 24%, or $127.2 million. Net income, inclusive of $34.4m in pre-tax costs for the extinguishment of debt associated with the refinancing of its outstanding debt in the third quarter and the income tax benefit noted above, increased to a record $152.9m.
Adjusted EBITDA, a non-GAAP financial measure, increased 97% to $347.2m compared to $176.5m in 2020 and was 37%, or $94.0m, higher than the prior record of $253.2 million generated in 2019.
The Free Cash Flow, a non-GAAP financial measure, increased to a record $158.7m, from $28.9 million in 2020 and was more than triple the $43.8m generated in 2019.
At the beginning of 2022, Everi also acquired ecash Holdings Pty Ltd. , an Australia-based developer and provider of innovative cash handling and financial payment solutions for the broader gaming industry in Australia, Asia, Europe and the United States. ecash’s products and technologies represent a strategic extension of Everi’s current suite of financial technology solutions within the FinTech segment. The acquisition will provide the company with a complementary portfolio of new customer locations throughout Australia, the United States and other geographies.