EVRI - Recent M&A play by Everi Holdings is expected to pay off quickly

Jefferies weighed in on the announcement by Everi Holdings (NYSE:EVRI) on the acquisition of ecash Holdings for $23.6M. The deal includes an additional payment of $7.1M contingent upon certain growth targets. Analyst David Katz noted that the acquisition accelerated EVRI's entry into the Australian market while incrementally supporting the U.S. market. "Our impression is that the acquisition is immediately accretive from an earnings and valuation perspective and that it should remain accretive based on expectations for growth and improvement over time. Further, we believe the business should consume capex concurrently with the timing of its growth, which implies it should be cash flow– accretive immediately as well." In regard to the impact on Everi's (EVRI) balance sheet, Katz pointed out that the leverage level of 2.5X for 2022 should at least remain intact, if not be improved post closing. Jefferies has a Buy rating on EVRI and price target of

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Recent M&A play by Everi Holdings is expected to pay off quickly