In a significant strategic move, Evolution has finalized plans to acquire Galaxy Gaming for an estimated $85 million, marking a pivotal step in its expansion strategy into the U.S. market. This acquisition is strategically aligned with Evolution’s objectives to broaden its influence in the U.S. and integrate into the land-based casino sector, historically dominated by traditional operators.
Comprehensive acquisition details:
Evolution’s approach to the acquisition involves purchasing Galaxy Gaming’s outstanding shares at $3.20 each, offering a substantial 124% premium over the stock’s closing price prior to the announcement. The comprehensive value of the deal, inclusive of net debt, is calculated at around $124 million. Scheduled to conclude by mid-2025, the acquisition is backed by robust financial planning, with funds sourced from Evolution’s existing cash reserves and supported by the affirmative stance of Galaxy board members, who own a 14% stake in the company.
With this acquisition, Evolution not only diversifies its geographical presence but also enhances its product line. Galaxy Gaming, renowned for its innovative table games and associated technologies such as progressive bonusing systems and advanced dealer terminals, holds licenses in 131 markets globally, including 28 in the U.S. This addition is set to significantly enhance Evolution’s existing portfolio, previously enriched by acquisitions aimed at bolstering its slots and digital offerings.
Leadership and visionary statements:
The leadership of both companies have expressed strong support for the acquisition. Evolution’s CEO, Martin Carlesund, commented, “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.”
Matt Reback, CEO of Galaxy Gaming, emphasized the synergistic potential of the merger, noting the alignment of both companies’ customer-centric strategies and the enhanced capacity to innovate within the industry in the company’s press release.
Looking forward, the merger is expected to catalyze significant advancements in both companies’ market offerings. The union of Evolution’s global reach and innovative online platform with Galaxy’s strong land-based presence and technological prowess is anticipated to drive significant innovation across both platforms. Moreover, the strategic acquisition positions Evolution to effectively compete in an increasingly integrated market, where the blend of online and physical gaming experiences continues to gain prominence.
The acquisition of Galaxy Gaming by Evolution is seen as a transformative move for the company, potentially setting new industry standards in the integration of online and land-based gaming operations. The deal not only enhances Evolution’s market share but also reinforces its capacity to lead in a rapidly evolving gaming landscape.
