- Evolution has announced an agreement to acquire Las Vegas based gaming supplier Galaxy Gaming.
- The reported purchase price of the acquisition is $85 million USD.
- Both companies are established game suppliers in the casino industry.
In a strategic move to enhance its presence in the United States, Evolution has announced an agreement to acquire Las Vegas-based gaming supplier Galaxy Gaming for $85 million. The deal is set to solidify Evolution’s position as a leading licensor of proprietary table games within the iGaming industry.
Evolution has agreed to purchase all outstanding shares of Galaxy Gaming at $3.20 per share in cash, representing a substantial 124% premium over Galaxy’s closing share price on July 17. The acquisition places Galaxy Gaming’s total equity value at $85 million and $124 million, including net debt.
“We are thrilled to announce the acquisition of Galaxy Gaming, which represents a significant milestone in our mission to provide unparalleled gaming experiences to our customers,” said Evolution CEO Martin Carlesund. “Galaxy Gaming’s exceptional products and technology complement our existing portfolio and strengthen our strategic position.”
The acquisition is subject to customary closing conditions, including approval from Galaxy Gaming stockholders and certain gaming regulatory authorities. The transaction is anticipated to close by mid-2025.
Galaxy Gaming, known for its innovative table games like 21+3 and Lucky Ladies, holds 28 licenses across the United States. This acquisition enhances Evolution’s footprint in the U.S. market and adds a diverse array of table games to its already robust portfolio.
Both companies have a history of collaboration, having successfully brought popular games to regulated iGaming markets worldwide. This acquisition further empowers Galaxy Gaming to leverage Evolution’s operational and financial strengths while maintaining its independence as a separate business unit.
“We believe this transaction represents the opportunity to unite two world-class, customer-focused teams in a way that will benefit all stakeholders,” said Matt Reback, President and CEO of Galaxy Gaming. “It combines Galaxy Gaming’s thriving land-based business, driven by our industry-leading games and progressive technologies, with Evolution’s global reach and innovative online gaming leadership.”
Galaxy Gaming expects to generate net revenue of between $29 million and $30 million for the fiscal year 2024, with adjusted EBITDA projected to be between $12 million and $13 million. The acquisition is seen as a strategic move to capitalize on both companies’ strengths, paving the way for future growth and innovation in the gaming industry.
Despite the positive outlook, the announcement had an immediate impact on the stock market. Shares in Evolution AB (STO:EVO) fell by 8.65% to SEK1,062.00 per share in Stockholm following the news and the release of the company’s second-quarter results. Meanwhile, shares in Galaxy Gaming Inc. (OTCQB:GLXZ) closed 1.40% lower at $1.41 per share in New York on Thursday.
With Evolution’s support, Galaxy Gaming plans to continue its focus on growth and expansion, aiming to drive cutting-edge omni-channel innovation and product sharing. The acquisition is expected to create synergies that will benefit both companies and their customers, offering enhanced gaming experiences worldwide.
The partnership between Evolution and Galaxy Gaming marks a significant step forward in the evolution of the gaming industry, promising new opportunities for innovation and market expansion.
