Everi-IGT Merger Improves Outlook, Fitch Maintains Score
Fitch Scores has actually reaffirmed Everi Holdings’ BB- long-term issuer default ranking, highlighting that the business is on track to emerge stronger following its upcoming merger with International Game Innovation (IGT). At the end of March, Fitch likewise declared MGM Resorts’ BB-rating, showing the company’s EBITDA utilize. Positive Outlook for Everi The scores company that uses forward-looking credit opinions has actually mentioned Everi’s expanded scale, broader item offerings, and considerable expense synergies as essential factors in its favorable outlook.
While Fitch does anticipate a 3.4% dip in Everi’s profits for 2025 due to short-term softness in gaming operations, it anticipates growth to return in the years following the merger. “The combined entity produced 2024 pro forma revenues and adjusted EBITDA of $2.6 bn and $1.1 bn, respectively,” Fitch noted. With around 70,000 gaming units in the field, the merger would give the new entity a larger installed base than rivals like Light & Wonder, which presently stands at 54,397 systems.
“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 surpassing existing leaders Light & Marvel and Aristocrat Leisure.
“Mid-Single-Digit Earnings 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 globally, and expanding IGT’s games into the Class II market. “Management expects $140m in run-rate cost synergies to be realized by the 3rd year,” Fitch reported. These will come from areas such as supply chain efficiency, operational streamlining, and facility consolidation. Another $20 million in annual capex savings is also anticipated.
While the merged company’s financials are still smaller than Light & Marvel or Aristocrat, Fitch sees Everi’s FinTech division as a unique growth lever, especially with IGT’s strong global sales force.
