Evolution subsidiary Evolution Malta Holding Limited has announced an agreement to acquire Galaxy Gaming, Inc. for an equity value of about $85 million, payable in cash. This acquisition is set to significantly bolster Evolution’s presence in the US market, furthering its goal to be the premier provider of casino games worldwide.
Strategic Integration and Market Leadership
Galaxy Gaming, a trailblazer in the development and distribution of casino table games and advanced gaming technologies, has made a significant impact on the casino industry. Known for its innovative products and superior service, Galaxy Gaming has built a strong reputation as a reliable partner for casinos globally. The acquisition by Evolution is intended to enhance its extensive gaming content portfolio and solidify its leadership in the US market.
“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. Galaxy Gaming’s exceptional products and technology complement our existing portfolio and strengthen our strategic position,” said Martin Carlesund, CEO of Evolution.
Maintaining Independence and Driving Growth
Following the acquisition, Galaxy Gaming will continue to function as a separate and independent business unit, with its current management and staff retained. This approach ensures stability and continuity while leveraging Evolution’s operational and financial resources to drive growth and innovation.
“We believe this transaction represents the opportunity to unite two world-class, customer-focused teams in a way that will benefit all stakeholders. It combines Galaxy Gaming’s thriving land-based business with Evolution’s global reach and innovative online gaming leadership,” commented Matt Reback, President and CEO of Galaxy Gaming.
Financial Details and Transaction Timeline
According to the Merger Agreement, Evolution will acquire all of Galaxy Gaming’s outstanding common stock shares for $3.20 per share in cash, reflecting a 124% premiumon Galaxy Gaming’s closing share price on July 17, 2024. The total equity value of the transaction stands at approximately $85 million, with the total value, including net debt, around $124 million. The acquisition will be funded with available cash reserves.
The transaction has received the approval of Galaxy Gaming’s board of directors, with board members holding roughly 14% of the company’s stock agreeing to vote in favor of the deal. The closing of the transaction is anticipated in mid-2025, pending customary closing conditions, including stockholder and regulatory approvals.
Advisors and Future Prospects
In this transaction, Evolution is being advised by J.P. Morgan SE as its exclusive financial advisor and Kirkland & Ellis LLP as its legal advisor. Galaxy Gaming is receiving advisory services from Macquarie Capital and legal advice from Latham & Watkins LLP.
Evolution’s acquisition of Galaxy Gaming is a pivotal move in its strategy to expand its footprint in the US. Earlier in 2024, Evolution acquired the social casino platform Livespins and established partnerships with major US online gaming operators like Caesars Digital and Rush Street Interactive. Additionally, Evolution has launched its Nolimit City studio across six US markets, further demonstrating its commitment to the American gaming sector.
Source:
EVOLUTION TO ACQUIRE GALAXY GAMING, A LEADING INDEPENDENT DEVELOPER AND DISTRIBUTOR OF CASINO TABLE GAMES AND TECHNOLOGY, galaxygaming.com, July 18, 2024.