Evolution has agreed to acquire Galaxy Gaming for a total equity value of roughly $85 million, payable in cash. This strategic acquisition is intended to strengthen Evolution’s footprint in the US market and broaden its inventory of gaming content.
Evolution to Acquire Galaxy Gaming for $85 Million in Cash
Galaxy Gaming: A Leader in Casino Table Games and Technology Solutions
Galaxy Gaming is renowned for its innovative casino table games and gaming technology solutions. With established partnerships with casinos worldwide, Galaxy Gaming has a strong reputation in the gaming industry. This acquisition aligns with Evolution’s strategy to supply its customers with diverse and engaging gaming content.
A Strategic Move to Enhance Evolution’s Portfolio
Martin Carlesund, CEO of Evolution, expressed enthusiasm about the acquisition, stating: “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.”
This move underscores the company’s commitment to maintaining Galaxy Gaming’s independence while leveraging its own operational and financial strength to drive growth and innovation.
Empowering Growth and Innovation
Matt Reback, President and CEO of Galaxy Gaming, highlighted the benefits of the acquisition: “For years, our collaboration has successfully delivered popular games like 21+3 and Lucky Ladies 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.”
Details of the Acquisition
Under the terms of the agreement, the company 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 $85 million, or about $124 million including net debt. The acquisition will be financed with cash on hand.
Board Approval and Next Steps
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 favor 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.
Advisors for the Transaction
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.
Evolution’s Recent Expansion in the US Market
In July 2024, Evolution launched online live casino games in Delaware through a partnership with Rush Street Interactive’s BetRivers platform. This launch included popular games like roulette, blackjack, baccarat, and various poker variants. This expansion marks another significant milestone in the company’s growth strategy, further solidifying its presence in the US market.
Conclusion: The Acquisition
The acquisition of Galaxy Gaming represents a pivotal moment for Evolution, enhancing its gaming portfolio and expanding its footprint in the US market. By integrating Galaxy Gaming’s innovative products and technology, it is poised to deliver an unparalleled gaming experience to its customers.
FAQs About Evolution’s Acquisition of Galaxy Gaming
1. What is the total value of the acquisition deal between Evolution and Galaxy Gaming?
The total equity value of the acquisition deal is approximately $85 million, payable in cash. Including net debt, the total value is about $124 million.
2. What is Galaxy Gaming known for?
Galaxy Gaming is known for its innovative casino table games and gaming technology solutions. They have established partnerships with casinos worldwide.
3. What benefits does Evolution expect from acquiring Galaxy Gaming?
The acquisition aims to complement Evolution’s existing portfolio, strengthen its strategic position, and enhance its presence in the US market. The company also plans to maintain Galaxy Gaming as a separate and independent business unit.
4. Will Galaxy Gaming retain its current management and employees after the acquisition?
Yes, Evolution intends to retain the management and employees of Galaxy Gaming.
5. What are the terms of the share acquisition?
The company 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.
6. How will the acquisition be financed?
The acquisition will be financed with cash on hand.
7. What approvals are needed for the acquisition to be completed?
The completion of the acquisition is subject to customary closing conditions, including stockholder approval and regulatory approvals.
8. When is the transaction expected to close?
The transaction is expected to close by mid-2025.
9. Who are the financial and legal advisors for the transaction?
JP Morgan SE is Evolution’s exclusive financial advisor, and Kirkland & Ellis is their legal advisor. Macquarie Capital is Galaxy Gaming’s exclusive financial advisor, and Latham & Watkins is their legal advisor.
10. What recent expansion has Evolution made in the US market?
In July 2024, Evolution launched online live casino games in Delaware through a partnership with Rush Street Interactive’s BetRivers platform. This included games like roulette, blackjack, baccarat, and various poker variants.
11. How does this acquisition impact Evolution’s strategy?
This acquisition enhance its gaming content portfolio and expand its footprint in the US market, providing a stronger competitive edge and better gaming experiences for its customers.
