Evolution to Acquire Galaxy Gaming in $85 Million Deal

Evolution AB’s wholly-owned subsidiary, Evolution Malta Holding Limited, has announced an agreement to acquire Galaxy Gaming, Inc. for approximately $85 millionin cash. This strategic acquisition aims to enhance Evolution’s position in the US market and solidify its standing as a leading provider of casino games and technology.

Galaxy Gaming, renowned for its innovative casino table games and advanced gaming technology solutions, has been a transformative force in the casino industry. Its diverse portfolio of cutting-edge games has made it in the US market.

“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. Galaxy Gaming’s exceptional products and technology complement our existing portfolio and strengthen our strategic position,” stated Martin Carlesund, CEO of Evolution AB.

Operational Independence and Future Growth

Despite the acquisition, Galaxy Gaming will continue to operate as a separate and independent business unit. Evolution intends to retain the existing management and employees, ensuring continuity and stability. This strategic move combines Galaxy Gaming’s robust land-based business, driven by its industry-leading games and progressive technologies, with Evolution’s extensive global reach and innovative online gaming leadership.

“We believe this transaction represents the opportunity to unite two world-class, customer-focused teams in a way that will benefit all stakeholders. It combines Galaxy Gaming’s thriving land-based business with Evolution’s global reach and innovative online gaming leadership,” commented Matt Reback, President and CEO of Galaxy Gaming.

Financial Details and Transaction Timeline

Under the Merger Agreement, Evolution will acquire all outstanding shares of Galaxy Gaming’s common stock for $3.20 per share, a 124% over the closing share price on July 17, 2024. The total equity value of the transaction is approximately $85 million, with a total value of about $124 million, including net debt. The acquisition will be financed with cash on hand.

The transaction has received approval from the board of directors of Galaxy Gaming, with board holding approximately 14% of the company’s stock agreeing to vote in favor of the deal. The closing of the transaction is expected by mid-2025, subject to customary closing conditions, including stockholder and regulatory approvals.

Advisors and Future Plans

In connection with the transaction, Evolution has engaged J.P. Morgan SE as its exclusive financial advisor and Kirkland & Ellis LLP as legal advisor. Galaxy Gaming has enlisted Macquarie Capital as its exclusive financial advisor and Latham & Watkins LLP as legal advisor.

Evolution’s acquisition of Galaxy Gaming is a significant step in its ongoing efforts to expand its US presence. The company has made several strategic moves in 2024, including the acquisition of Nolimit City studio across multiple US markets, demonstrate Evolution’s commitment to strengthening its foothold in the American gaming market.

Source:

EVOLUTION TO ACQUIRE GALAXY GAMING, A LEADING INDEPENDENT DEVELOPER AND DISTRIBUTOR OF CASINO TABLE GAMES AND TECHNOLOGY, galaxygaming.com, July 18, 2024.