Evolution subsidiary enters agreement to acquire Las Vegas-based Galaxy Gaming for $85 million

Thursday, July 18, 2024 5:21 PM
Photo:  CDC Gaming
  • Rege Behe, CDC Gaming

Las Vegas-based Galaxy Gaming, a developer and distributor of casino table games and technology solutions, announced on Thursday that it has reached an agreement to be acquired by Evolution Malta Holdings Limited, a subsidiary of Evolution AB, for roughly $85 million in cash.

“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 customer,” said Evolution AB CEO Martin Carlesund in a statement. “Galaxy Gaming’s exceptional products and technology complement our existing portfolio and strengthen our strategic position.

“Evolution intends to retain the management and employees and also plans to operate Galaxy Gaming as a separate and independent business unit.”

Evolution develops, produces, markets and licenses fully-integrated B2B live casino solutions to gaming operators since its founding in 2006.

A release stated that the acquisition is in line with Evolution’s strategy to be “the world’s top provider of casino games, supplying its customers with the best gaming content.” The acquisition of Galaxy Gaming also solidifies Evolution’s presence in the U.S. market “and enhances its position as a leading licensor of proprietary tables games to the online gaming industry.”

“We believe this transaction represents the opportunity to unite two world-class, customer-focused teams in a way that will benefit all stakeholders,” said Galaxy Gaming President and CEO Matt Reback. “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 omni-channel innovation.”

Galaxy Gaming has provided guidance of $29.0-$30.0 million in net revenue and $12.0-$13.0 million in adjusted EBITDA for fiscal year 2024.

Galaxy Gaming closed at $1.49 on the OTCMKTS, down $0.01, or 0.7%.