Evolution has finalized plans to acquire Galaxy Gaming for approximately $85 million, a major strategic move that marks a key step in its expansion strategy into the U.S. market. The acquisition is strategically aligned with Evolution's goal to expand its presence in the United States and integrate into the land-based casino industry, which is dominated by legacy operators.
Details of the overall acquisition:
Evolution is acquiring Galaxy Gaming's outstanding shares for $3.20 per share, a 124% premium to the closing price prior to the announcement. The combined value of the transaction, including net debt, is approximately $124 million. The acquisition, scheduled to close in mid-2025, is backed by robust financial planning, funded from Evolution’s existing cash reserves, and has the active support of Galaxy’s board members, who hold a 14% stake in the company.
With this acquisition, Evolution not only diversifies its geographical presence but also strengthens its product line. Known for its innovative table games and related technologies such as progressive jackpot systems and advanced sportsbook terminals, Galaxy Gaming holds licenses in 131 markets around the world, including 28 markets in the United States. The acquisition will significantly enhance Evolution’s existing product portfolio, which it has previously enriched through acquisitions aimed at strengthening its slots and digital offerings.
Statement of Leadership and Vision:
The leadership of both companies has expressed strong support for the acquisition. Martin Carlesund, CEO of Evolution, commented: "We are delighted to announce the acquisition of Galaxy Gaming, which is an important milestone in our mission to provide customers with an unparalleled gaming experience. Galaxy Gaming's superior products and technology complement our existing product portfolio and strengthens our strategic position."
Galaxy Gaming CEO Matt Reback highlighted the synergistic potential of the merger in a company press release, noting the alignment of both companies' customer-centric strategies and enhanced industry innovation capabilities.
Going forward, the merger is expected to facilitate significant advancements in both companies' market offerings. Combining Evolution's global reach and innovative online platform with Galaxy's strong physical presence and technology capabilities is expected to drive significant innovation across both platforms. Additionally, this strategic acquisition positions Evolution to compete effectively in an increasingly integrated market where the convergence of online and physical gaming experiences continues to be valued.
Evolution's acquisition of Galaxy Gaming is seen as a transformational move for the company and is expected to set a new industry standard for the integration of online and offline gaming operations. The transaction not only increases Evolution's market share but also strengthens its ability to lead in the rapidly growing gaming space.
