Editor’s note: This story has been updated to include a response from Galaxy Gaming and Evolution’s intention to end the merger.
Evolution AB is no longer considering a previously announced acquisition of Galaxy Gaming after the deadline to close the transaction passed.
On Tuesday, Evolution published a public notice announcing the company’s termination of a merger agreement with Galaxy Gaming. The transaction was first announced in July 2024 and was expected to have a total equity value of approximately $85 million.
Evolution’s termination of the merger will still come at a cost for the company as it is required to pay a $5.2 million termination fee. In its public notice, Evolution does not oppose the termination fee that it intends to pay Galaxy Gaming.
Evolution and Galaxy Gaming have not disclosed when the termination fee is due.
“While we are disappointed with this outcome, we remain deeply committed to advancing our industry-leading games and progressive technologies,” said Galaxy Gaming CEO Matt Reback. “Galaxy is home to a world-class, customer-focused team that remains focused on independent growth for the benefit of all its stakeholders. Over the years, Evolution has been a valued partner to Galaxy, and we look forward to continuing our long-standing relationship.”
Evolution CEO teased potential nixing of acquisition
The end of a deal between Evolution and Galaxy Gaming comes as no surprise after Evolution CEO Martin Carlesund shared the company’s potential plans for its acquisition of Galaxy Gaming during the company’s Q2 2026 earnings call last week.
Carlesund said the company could still acquire Galaxy Gaming after a July 17 deadline to close the deal passed or completely nix the merger.
“After today, either party may choose to terminate the agreement,” said Carlesund during the Q2 earnings call on July 17. “Two years have passed, and we have spent significant time, effort and resources handling the administration needed to close the acquisition.”
Long history between Evolution, Galaxy Gaming
Evolution is no longer acquiring Galaxy Gaming, ending a two-year sales process.
The transaction received initial approval from Galaxy Gaming’s board of directors and was expected to close in Q1 2026 but quickly stalled.
In November 2025, Galaxy and Evolution mutually agreed to extend the merger agreement until July 17, 2026. Carlesund was asked about the potential impact of the acquisition during Evolution’s Q2 earnings call after the deadline to close the deal passed.
“I really think that Galaxy is a great company, and we have had a strong commercial relationship with them for many years,” continued Carlesund. “But due to its size, the transaction is not significant for Evolution. That means that the outcome has no material impact on our existing business, our U.S. operations or our long-term ambitions.”
Galaxy Gaming & Evolution to maintain relationship
Carlesund’s sentiment that a purchase of Galaxy Gaming would not impact Evolution’s existing operations follows a licensing extension between the two companies signed in 2023. The agreement extends Galaxy Gaming and Evolution’s licensing relationship for an additional 10 years, allowing Galaxy Gaming to offer its games across Evolution products.
The termination of the merger will not impact the existing licensing agreement forged between Evolution and Galaxy Gaming. Evolution shared that the dissolving of its planned acquisition will not have an impact on the company’s plans moving forward.
“I also point out that, as a matter of the size, it’s not anything that is significant, and it doesn’t affect Evolution’s plans or anything else in the U.S. or elsewhere,” added Carlesund.
Galaxy Gaming was open to closing merger
Galaxy Gaming responded to Evolution’s lack of action regarding the deal by declaring that the company was still open to closing a merger despite the July 17 deadline passing.
The company stated in a press release on July 20 that neither party had terminated the agreement and that the company was “evaluating its options”, including pursuing another extension of the merger agreement or completely terminating the deal.
“For two years, we have been working with Evolution towards a closing of the Merger Agreement,” said Reback last week.
“During this same time, we have also been focused on growing Galaxy by increasing the range of our table games products, expanding into new markets, deepening partnerships with new and existing customers, increasing the share of our recurring revenues, and assembling a team of the highest caliber individuals possible. We are excited about the trajectory of the company, and we look forward to a continued relationship with Evolution.”
Evolution latest financial results
Evolution ended its bid to acquire Galaxy Gaming after the gaming giant reported a year-over-year decline in quarterly revenue. In Q2 2026, net revenue for the company reached $592 million, a decrease from $600 million for the same period last year.
Evolution’s EBITDA for Q2 2026 closed at $390 million, down from $394 million in Q2 2025. Meanwhile, the company’s profit grew to $288 million, up from $284 million in Q2 2025.
Evolution’s North America revenue grew by 9.5% year-over-year in Q2 2026 to $93 million.
During the quarter, the Swedish company opened its second live dealer studio in Michigan, bringing the company’s total live dealer studios to seven in the U.S. Earlier this week, the company continued to expand its presence in North America with its debut in Alberta.
Evolution reaches settlement in Europe
It has been a month for Evolution as the company released its latest earnings results, while also agreeing to a $6.4 million settlement with the UK Gambling Commission. The settlement resolves a license review by the regulator launched in December 2024.
Evolution is settling with the UK Gambling Commission over the delivery of its content on unlicensed gambling platforms to British customers. The company breached its terms of supply by offering content to two operators that do not hold a gaming license for six sites.
“At Evolution, we always want to do what is right, and it is not acceptable that six unlicensed sites offered Evolution content in the regulated UK market. We do not want traffic from unlicensed operators and will always move quickly to address any such situation. We welcome the conclusion of the review and remain focused on continuing to supply our world-leading games to licensed operators in the UK,” said Carlesund.
Unfavorable court ruling for Evolution
The company also received unfavorable news in its legal dispute against New Jersey-based law firm Calcagni & Kanefsky LLP.
Last month, Evolution’s request to add Playtech as a defendant in a defamation lawsuit against Calcagni & Kanefsky LLP was denied. The ruling was procedural as Evolution simultaneously filed a motion for relief from a stay under the Uniform Public Expression Protection Act (UPEPA). The ruling is without prejudice, allowing Evolution to make another attempt to add Playtech to the suit once the UPEPA issue is resolved.
Evolution is taking legal action against Calcagni & Kanefsky after Playtech hired a private intelligence firm, Black Cube, to draft a report on Evolution’s business practices. Playtech hired the firm claiming Evolution operated illegally in several international markets.
Playtech claims the commissioning of the report is fair and permissible. Meanwhile, Evolution argues that the report was commissioned to eliminate competition in the U.S.
