Evolution Terminates $85 Million Acquisition Deal With Galaxy Gaming
Evolution has opted to pay a $5.2 million breakup fee instead of buying Galaxy
The merger between Evolution and Galaxy Gaming will not take place, as Evolution has given notice of termination.
Evolution made the announcement Tuesday in a terse statement, noting that while the deal is off, the two companies will still work together and Evolution will pay $5.2 million for canceling the deal.
“For two years, we have been working with Evolution towards a closing of the Merger Agreement,” Matt Reback, president and CEO of Galaxy, said in its own press release. “During this same time, we have also been focused on growing Galaxy by increasing the range of our table games products, expanding into new markets, deepening partnerships with new and existing customers, increasing the share of our recurring revenues, and assembling a team of the highest caliber individuals possible. We are excited about the trajectory of the company, and we look forward to a continued relationship with Evolution.”
The failure of the merger was hinted at last week in a press release for Evolution’s Q2 results.
“Two years have passed, and Evolution has spent significant time, effort, and resources handling the rather large amount of administration required to close this acquisition,” Evolution CEO Martin Carlesund said. “Galaxy is a great company; however, due to its size, the transaction is not significant for Evolution. The outcome has no material impact on our existing business, our U.S. operations, or our long-term ambitions.”
Two years
The merger was first announced in July 2024, when Evolution agreed to buy Galaxy Gaming for $3.20 a share. The deal valued the Las Vegas game developer at about $85 million, or $124 million including net debt, and represented a 124% premium over Galaxy's share price at the time.
Under the agreement, Galaxy would have operated as a separate business unit within Evolution while retaining its existing management and employees. The companies had been expected to close on the deal by mid-2025, pending approval from Galaxy shareholders and regulators.
Founded in 2006, Galaxy Gaming builds casino table games, bonus systems, and related technology, and it holds 131 licenses worldwide, including in 28 U.S. states. Evolution, also founded in 2006, is a live dealer casino leader that has expanded through acquisitions of brands such as NetEnt, Red Tiger, and Big Time Gaming.
Jeff Edelstein is a longtime columnist, reporter, radio host, and fantasy sports aficionado, not necessarily in that order. He lives in New Jersey with his family.
