Evolution Strengthens US Presence With Galaxy Gaming Acquisition 

Casino software provider Evolution has agreed to purchase Galaxy Gaming in a move aimed toward bolstering its position in the U.S. market and becoming the world’s leading casino game provider. A press release issued Thursday revealed that Evolution will purchase the game developer’s outstanding shares for $3.20 each.

The purchase price represents a premium of 124% over Galaxy Gaming’s share price prior to Thursday’s announcement and values the company at approximately $85 million, or $124 million with net debt included.

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

What does Galaxy look like going forward?

Galaxy Gaming will operate as a separate and independent business unit under Evolution and will retain existing management and employees.

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

The transaction, however, is subject to approval from Galaxy Gaming’s stockholders and regulatory bodies. Pending the satisfaction of closing conditions, the deal is expected to close midway through 2025.

About the companies

Founded in 2006, Galaxy Gaming is known for its casino games, bonus systems, and technology solutions. The company is headquartered in Las Vegas and holds 131 licenses worldwide, including in 28 U.S. states.

For fiscal year 2024, Galaxy Gaming has projected net revenue of $29-$30 million and adjusted EBITDA of $12-$13 million.

Evolution also was founded in 2006 and has since acquired several online casino brands, including NetEnt, Red Tiger, and Big Time Gaming. Evolution recently launched its live dealer casino games across the three BetRivers online casinos in Delaware as part of its U.S. expansion strategy.

Since making its U.S. debut in 2018 with services for Unibet in New Jersey, Evolution has expanded its presence to six of the seven regulated iGaming states, including Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia. The company has not launched in Rhode Island, which opened up its legal iGaming market to a single operator, Bally’s, this March.