LAS VEGAS - Everi Holdings Inc. (NYSE:EVRI), a $1.16 billion market cap company currently trading near its 52-week high, disclosed today that its Chief Financial Officer, Mark F. Labay, is slated to assume the role of Chief Integration Officer at Newco following a proposed transaction expected to close by the end of the third quarter of 2025.
According to InvestingPro data, the company maintains an impressive 80% gross profit margin and has seen its stock surge 78% over the past six months. The announcement came as part of a broader executive restructuring in connection with Everi's impending merger and acquisition activities.
The company, which operates within the miscellaneous amusement and recreation services industry, is part of a definitive agreement with International Game Technology PLC (NYSE:IGT) and other parties. The agreement outlines a transaction that will see Everi and IGT’s Gaming & Digital business acquired by a new holding company owned by funds managed by affiliates of Apollo Global Management (NYSE:APO), Inc.
According to the press release, the combined enterprise will be organized into three business units: Gaming, Digital, and FinTech. Hector Fernandez is set to lead as Chief Executive Officer of the new entity, with his appointment expected by the fourth quarter of 2025. Until Fernandez steps in, Nick Khin, President of Global Gaming at IGT, will serve as Interim CEO. Post-transition, Khin will become CEO of the Gaming business unit.
Additionally, Gil Rotem, current President of IGT PlayDigital, will lead the Digital business unit. Darren Simmons, Everi's Executive Vice President and FinTech Business Leader, will head the FinTech business unit, leveraging his experience as a named executive officer within Everi.
The company has stated that no significant changes to the senior management team are anticipated prior to the closing of the proposed transaction, except for the previously disclosed transition of Labay. The release also includes forward-looking statements regarding the anticipated benefits of the transaction, the expected timeline, and the management structure post-merger.
Investors and stakeholders have been advised to read relevant documents filed with the SEC, including Everi's proxy statement, to fully understand the implications and details of the proposed transaction. This news is based on a press release statement and has not been independently verified.
For deeper insights into Everi's financial health and valuation metrics, investors can access comprehensive analysis through InvestingPro, which offers exclusive access to detailed Pro Research Reports covering 1,400+ top US stocks, including EVRI.
In other recent news, Everi Holdings Inc. has made significant strides in its proposed transaction with International Game Technology PLC (IGT) and Apollo Global Management-affiliated entities. The company has successfully cleared a crucial regulatory hurdle, bringing the deal closer to fruition.
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 Apollo-affiliated funds.
However, the completion of this strategic move is still subject to certain conditions, including obtaining necessary gaming and regulatory approvals.
Everi's earnings and revenue have been under scrutiny by analysts. B.Riley maintained a Neutral rating on Everi, adjusting its EBITDA estimates for 2024 and 2025 to $325.4 million and $346.9 million, respectively, due to potential delays in product transitions within Everi's games business. The company'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.
Everi's stock rating was downgraded by Stifel from Buy to Hold following the announcement of its acquisition by Apollo Global Management. Concurrently, Raymond (NS:RYMD) James adjusted Everi's stock rating from a 'Strong Buy' to a 'Market Perform' status. These are among the recent developments for Everi Holdings.
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