Evolution will acquire all outstanding shares of Galaxy Gaming common stock for $3.20 per share in cash via its Evolution Malta Holding Subsidiary. This is a premium of 124% of closing share price on 17 July, the last trading day before the acquisition announcement and values the supplier at approximately $85m, or $124m including net debt.
Evolution will fund the deal with cash on hand, with Galaxy board members holding 14% of common stock committed to backing the acquisition. Subject to customary closing conditions, the supplier expects to close the deal midway through 2025.
After slot trolley dash, Evolution turns to the tables
The acquisition will strengthen Evolution’s presence in the US market and its proprietary table games offering. Galaxy also supplies games and technology such as bonusing systems and dealer terminals to land-based casinos, with licences covering 131 markets around the world, including 28 US states.
It follows a flurry of slot acquisitions in recent years such as LiveSpins, NetEnt, Big Time Gaming and NoLimit City with DigiWheel its only recent table games deal. Galaxy is one of the first that gives it a significant land-based presence.
Evolution CEO: Galaxy strengthens strategic position
Commenting on the acquisition, Evolution CEO Martin Carlesund describes the deal as a “significant” milestone for the group that strengthens its strategic position with access to new channels and a complementary product suite.
For Galaxy Gaming CEO and president Matt Reback the acquisition unites two customer-focused teams and benefit all stakeholders
“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,” Reback said.
Galaxy will run as a separate entity within the Evolution group, the supplier said, with management and current employees retained. The business therefore maintains its independence with Evolution’s financial and operational muscle helping it drive omnichannel innovation, Reback added.
Original article: https://igamingbusiness.com/strategy/ma/evolution-acquires-galaxy-gaming/
