Evolution to Buy Games Developer Galaxy Gaming

Evolution to acquire Galaxy Gaming, a leading independent developer and distributor of casino table games and technology

Evolution AB (publ)’s wholly owned subsidiary, Evolution Malta Holding Limited, (“Evolution”) has entered into an agreement to acquire Galaxy Gaming, Inc. (“Galaxy Gaming”) for a total equity value of approximately $85 million (the “Transaction”), payable in cash.

Transaction highlights and strategic rationale

Galaxy Gaming, a leading developer and distributor of innovative casino table games and enhanced gaming technology solutions, continues to revolutionize the casino industry with its state-of-the-art products and exceptional service. With a diverse portfolio of cutting-edge games, Galaxy Gaming has established itself as a trusted partner to casinos worldwide.

The acquisition is in line with Evolution’s strategy of being the world’s top provider of casino games, supplying its customers with the best gaming content. With the acquisition of Galaxy Gaming, Evolution solidifies its presence in the US market and enhances its position as a leading licensor of proprietary tables games to the online gaming industry.

Martin Carlesund, CEO Evolution AB (publ),

“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.

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

Matt Reback, President and CEO, Galaxy Gaming,

“We believe this transaction represents the opportunity to unite two world-class, customer-focused teams in a way that will benefit all stakeholders.

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.

For years, our collaboration has successfully delivered popular games like 21+3® and Lucky Ladies® to millions of players in regulated iGaming markets globally.

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.

Live Casino Comparer Comment

Aside from the obvious business reasons for this purchase, Evolution is in a powerful position with its live casino competitors. They will now have control of existing licensing agreements between Galaxy Gaming and all the other live casino providers currently using their innovative side bets on Blackjack and Baccarat.

I can’t believe Evolution would do anything, but this must concern some of Galaxy’s existing customer base.

Notwithstanding, this move will give Evolution more IP control over its existing games catalogue and provide another income stream they can further develop.