Evolution Expands Reach Through Galaxy Gaming Acquisition

Article by : Erik Gibbs Jul 22, 2024

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Evolution AB, a prominent provider of casino games, announced that its subsidiary, Evolution Malta Holding Limited, has signed an agreement to acquire Galaxy Gaming, Inc. Galaxy Gaming, known for its innovative casino table games, will be acquired for approximately $85 million in cash. This acquisition marks a strategic move for Evolution AB as it seeks to strengthen its leadership position in the global gaming industry.

Galaxy Gaming has established itself as a reputable developer and distributor of advanced table games and gaming technology solutions. The company’s product portfolio is highly regarded and has made it a trusted partner for casinos worldwide. By merging with Evolution, Galaxy Gaming intends to leverage Evolution’s extensive reach and financial strength to further its growth and innovation initiatives.

Matt Reback, President and CEO of Galaxy Gaming, expressed his enthusiasm about the acquisition, stating, “This acquisition represents a perfect alignment of two industry leaders with a shared commitment to delivering exceptional gaming experiences. We are excited to combine our strengths with Evolution’s global platform to create new opportunities and drive value for our customers and shareholders.”

The acquisition is expected to significantly enhance Evolution’s footprint in the competitive US market. By integrating Galaxy Gaming’s successful track record with Evolution’s existing offerings, the combined entity aims to capture a larger share of the market and better meet the evolving demands of players.

Evolution’s CEO highlighted the strategic importance of the acquisition, saying, “Galaxy Gaming brings a wealth of expertise and a strong product portfolio that complements our existing business. This acquisition is a strategic move that will enhance our ability to deliver innovative and engaging gaming experiences to our customers worldwide.”

For the fiscal year 2024, Galaxy Gaming has forecasted net revenue between $29.0 and $30.0 million and adjusted EBITDA between $12.0 and $13.0 million. The acquisition is expected to positively impact Evolution’s earnings per share in the first full year following the acquisition.

The terms of the agreement stipulate that Evolution will acquire all outstanding shares of Galaxy Gaming common stock for $3.20 per share in cash, representing a 124% premium over the closing share price on July 17, 2024. This values Galaxy Gaming’s total equity at approximately $85 million and the overall transaction, including net debt, at about $124 million.

The transaction is subject to customary closing conditions, including approval from Galaxy Gaming’s stockholders and certain regulatory approvals related to gaming. Both parties anticipate that the deal will be finalized by mid-2025.

Overall, this acquisition underscores Evolution’s commitment to expanding its influence in the global gaming industry and its dedication to providing cutting-edge gaming experiences. The strategic alignment with Galaxy Gaming is expected to bring new growth opportunities and drive value for both companies’ customers and shareholders, marking a significant milestone in Evolution’s ongoing expansion strategy.