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Evolution has entered into an agreement to acquire Galaxy Gaming for a total equity value of approximately $85m, payable in cash.
Galaxy Gaming is known for its casino table games and gaming technology solutions and has established partnerships with casinos worldwide. The acquisition is part of Evolution’s strategy to supply its customers with gaming content and to strengthen its presence in the US market.
Martin Carlesund, Evolution CEO, stated: “Galaxy Gaming’s exceptional products and technology complement our existing portfolio and strengthen our strategic position. Evolution intends to retain the management and employees and also plans to operate Galaxy Gaming as a separate and independent business unit.”
Matt Reback, Galaxy Gaming President and CEO, added: “For years, our collaboration has successfully delivered popular games like 21+3 and LuckyLadies to millions of players in regulated iGaming markets globally. This acquisition by Evolution empowers Galaxy to sustain and maintain its independence while continuing to focus on growth and expanding its operations, leveraging Evolution’s operational and financial strength to facilitate product sharing and drive omni-channel innovation.“
Under the terms of the agreement, Evolution will acquire all outstanding shares of Galaxy Gaming’s common stock at $3.20 per share in cash, representing a 124% premium to Galaxy Gaming’s closing share price on 17 July 2024. The total equity value of the transaction is approximately $85m, or about $124m including net debt. The acquisition will be financed with cash on hand.
The transaction has received approval from Galaxy Gaming’s board of directors. Board members holding approximately 14% of Galaxy Gaming’s common stock have agreed to vote in favour of the transaction. The completion of the acquisition is subject to customary closing conditions, including stockholder approval and regulatory approvals. The parties expect the transaction to close by mid-2025.
Evolution has brought on JP Morgan SE as its exclusive financial advisor and Kirkland & Ellis as its legal advisor for the transaction. Galaxy Gaming has enlisted Macquarie Capital as its exclusive financial advisor and Latham & Watkins as its legal advisor.
In July 2024, Evolution launched online live casino games in Delaware through a partnership with Rush Street Interactive’s BetRivers platform. This launch included games like roulette, blackjack, baccarat and various poker variants.
