Swedish game developer Evolution is acquiring Las Vegas-based Galaxy Gaming with a view to consolidating its position in the U.S. market.
Evolution’s wholly owned subsidiary, Evolution Malta Holding Ltd., has entered into an agreement to acquire casino table games and technology solutions developer Galaxy Gaming for a total equity value of approximately $85 million, payable in cash, the companies announced on Thursday.
The transaction has been approved by the board of directors of Galaxy Gaming and is expected to close in the middle of next year. The companies say the acquisition is, “in line with Evolution’s strategy of being the world’s top provider of casino games, supplying its customers with the best gaming content.”
Evolution will pay $3.20 for all outstanding shares of Galaxy Gaming common stock, a premium of 124% on Galaxy Gaming’s closing share price on July 17, 2024. Once completed, Galaxy will continue to operate as a separate and independent business unit and Evolution intends to retain Galaxy management and employees.
“With the acquisition of Galaxy Gaming, Evolution solidifies its presence in the U.S. market and enhances its position as a leading licensor of proprietary tables games to the online gaming industry,” said a press release.
Companies hail combining of two powers
“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,” said Evolution CEO Martin Carlesund. “Galaxy Gaming’s exceptional products and technology complement our existing portfolio and strengthen our strategic position.”
“We believe this transaction represents the opportunity to unite two world-class, customer-focused teams in a way that will benefit all stakeholders,” added Matt Reback, president and CEO of Galaxy Gaming. “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.
“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 omnichannel innovation.”
Acquisition continues Evolution’s U.S. inroads
Evolution’s talk of wanting to consolidate its position in the U.S. market is no surprise given that the company has taken several steps to boost its American presence in 2024.
The group, whose online casino brands include NetEnt, Red Tiger and Big Time, acquired the social casino platform Livespins earlier this year for around $5.4 million.
It has also extended its reach with two major U.S. online gaming operators in recent months, striking an agreement with Caesars Digital to build dedicated live casino studios across the U.S. and launching its online slots in Delaware with Rush Street Interactive‘s BetRivers brand through its partnership with the Delaware Lottery.
Just last month, Evolution launched its Nolimit City studio across all six of its U.S. markets simultaneously: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania and West Virginia.
