Last updated: August 14, 2024
Evolution has announced its plan to acquire Galaxy Gaming for about $85 million, payable in cash. This acquisition, set to close by mid-2025, will integrate Galaxy Gaming’s casino table games and technology into Evolution’s portfolio. The deal includes a 124% premium on Galaxy Gaming’s share price and will be financed with Evolution’s cash reserves.
Galaxy Gaming has recently entered into a new agreement whereby Evolution agreed to purchase Galaxy Gaming by issuing out cash that totals $ 85 million which is the total equity value of the specification.
As a corporation that deals with a multitude of global-based casinos, Galaxy Gaming is highly recognized for casing table games and gaming technologies. That offer is strategic in Evolution’s plans to expand its market share in the US and offer gaming content to its clients.
Martin Carlesund, the chief executive officer of Evolution, affiliated with Galaxy Gaming noted that Galaxy Gaming’s good products and technology will fit well in the existing portfolio of Evolution enhancing the firm’s strategic situation.
He stated that Evolution’s strategy for Galaxy Gaming is to maintain the management status quo and keep all employees while running it as a distinct subsidiary.
The President and the CEO Matt Reback from Galaxy Gaming noted that this has made it possible to take games such as 21+3 and LuckyLadies to millions of players located in regulated iGaming markets.
He said that this acquisition will also help Galaxy to remain an independent company: to remain focused on growth; and to grow. It will also enable Galaxy to make the operational and financial heft of Evolution available to drive product cross-sell and omnichannel change.
As per the agreement, Evolution will purchase all of Galaxy Gaming’s outstanding common stock shares for $3.20 in cash, which is a 124% premium over Galaxy Gaming’s closing share price on July 17, 2024. With net debt included, the transaction’s total equity value comes to about $124 million, or roughly $85 million. We have cash on hand to finance the purchase.
Galaxy Gaming has granted the board of Directors approval for the transaction. Board members who own about 14% of Galaxy Gaming’s common stock have agreed to vote in favor of the deal.
Customary closing requirements, such as regulatory and stockholder approvals, must be met before the acquisition can be completed. The parties hope to close the deal by mid-2025.
JP Morgan SE has been appointed as Evolution’s exclusive financial advisor, and Kirkland & Ellis has been appointed as its legal advisor in connection with the deal. Galaxy Gaming has retained the services of Latham & Watkins for legal counsel and Macquarie Capital for exclusive financial advice.
Evolution and Rush Street Interactive’s BetRivers platform partnered to launch online live casino games in Delaware in July 2024. Games like roulette, blackjack, baccarat, and different variations of poker were available during this launch.
