Share
To expand its presence in the United States, Swedish online casino game developer Evolution is acquiring Galaxy Gaming, a Las Vegas-based developer of table games and gaming technology solutions.
In a news release, Evolution CEO Martin Carlesund called the acquisition a major step in the company’s mission to provide the best gaming experiences.
“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.”
Key takeaways
- Evolution is acquiring Galaxy Gaming to expand its presence in the US online casino market.
- Despite the acquisition, Galaxy Gaming will maintain operational independence and function as a distinct business unit within Evolution.
- Evolution will purchase Galaxy Gaming’s outstanding common stock at a significant premium, using existing cash reserves.
Galaxy Gaming to maintain operational independence
In a move to take full control of Galaxy Gaming, Evolution will purchase all of Galaxy’s outstanding common stock. This acquisition will be carried out through Evolution’s subsidiary based in Malta.
Each share of Galaxy Gaming (OTCMKTS: GLXZ) will be bought for $3.20 in cash, representing a significant premium of 124% over its closing share price on July 17, 2024. That was the last trading day before the acquisition was announced.
Evolution will use its existing cash reserves to pay for the acquisition. This shows confidence in the deal from Galaxy’s leadership, as board members controlling 14% of the company’s common stock have publicly voiced their support.
Following the acquisition’s closure, Evolution will not absorb Galaxy Gaming’s existing operations. Instead, they will function as a distinct business unit with a high degree of autonomy.
This decision reflects Evolution’s faith in Galaxy’s leadership and workforce. They plan to retain these employees, ensuring a smooth transition and capitalizing on Galaxy’s established expertise in online casino content creation and technology markets.
“Evolution intends to retain the management and employees and also plans to operate Galaxy Gaming as a separate and independent business unit,” added Carlesund.
Evolution reports strong Q1 2024 results with significant growth in North American revenue
In its Q1 2024 news release, Evolution reported North American operating revenue of $66,632,679.00, a 7.7% increase year-over-year. This growth strengthens Evolution’s position in the US live dealer market, driven by partnerships and new market entries.
Some of its recent partnerships include the slot launch with Nolmit City and its debut with BetRivers Casino in Delaware. Matt Reback, president and CEO of Galaxy Gaming, said:
“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 cutting-edge omni-channel innovation.”
While Evolution boasts strong growth in North America, Galaxy Gaming experienced positive developments in FY2023. Its gross revenue across all segments saw a significant jump of 23%.
A nearly 8% increase in gross revenue from its digital division, a sector with promising growth potential, drove this positive trend.
However, it’s important to note that expenses within the digital division also increased. This cautious spending may be a factor behind Galaxy Gaming taking a more conservative approach to its 2024 forecast.
Part of the overall revenue increase is due to a renewed supplier license agreement with Evolution, the company now acquiring Galaxy Gaming. This suggests a potentially fruitful collaboration moving forward.
