Evolution AB's CEO, Martin Carlesund, is reconsidering the company's planned acquisition of Galaxy Gaming, which has a projected total equity value of around $85 million. This decision comes as today's the deadline to finalize the long-anticipated transaction. During the company's Q2 2026 earnings call, Carlesund revealed that Evolution might choose to abandon the purchase.
"After today, either party may choose to terminate the agreement. Two years have passed, and we have spent significant time, effort, and resources handling the administration needed to close the acquisition," Carlesund stated.
The relationship between Evolution and Galaxy Gaming dates back to July 2024, when Evolution first announced the agreement to acquire Galaxy. The transaction was approved by Galaxy Gaming's board and was expected to conclude in Q1 2026. In November 2025, both companies agreed to extend the merger deadline to July 17, 2026, putting Evolution in a position to reassess its commitment to the acquisition.
Carlesund expressed admiration for Galaxy, citing a strong commercial relationship over the years but indicated that the acquisition's relatively small scale means it would not materially affect Evolution's operations or ambitions. "Due to its size, the transaction is not significant for Evolution. That means that the outcome has no material impact on our existing business, our U.S. operations or our long-term ambitions," he clarified.
The evolution of their relationship includes a licensing extension signed in 2023 that allows Galaxy Gaming to offer its games on Evolution products for an additional 10 years. Even as Evolution considers ending its acquisition plans, Galaxy Gaming will still supply gaming content under the same ownership.
"We will now continue to evaluate," Carlesund added, reiterating that the noteworthiness of the transaction is minimal and does not influence Evolution's plans or operations in the U.S. or elsewhere.
In light of financial results, Evolution's interest in acquiring Galaxy Gaming appears diminished. For Q2 2026, Evolution reported a net revenue of $592 million, down from $600 million a year prior, with EBITDA at $390 million, a slight decrease from $394 million. However, profit showed a slight rise to $288 million, up from $284 million. Notably, revenue from North America grew by 9.5% year-over-year, reaching $93 million.
Recently, Evolution opened its second live dealer studio in Michigan, expanding its total to seven in the U.S., and entered the Alberta market, marking further growth in North America.
On a broader note, Evolution has had a busy week, also announcing a $6.4 million settlement with the UK Gambling Commission, resolving a license review initiated in December 2024. This settlement addresses issues related to the delivery of content on unlicensed gambling platforms in the UK.
Carlesund commented on the settlement, emphasizing, "At Evolution, we always want to do what is right, and it is not acceptable that six unlicensed sites offered Evolution content in the regulated UK market."
Additionally, Evolution faced setbacks in its legal battle against Calcagni & Kanefsky LLP, a New Jersey-based law firm. The court recently denied Evolution's request to add Playtech as a defendant in a defamation lawsuit. This decision was procedural, although it does leave the door open for Evolution to revisit this issue after resolving related matters under the Uniform Public Expression Protection Act (UPEPA). Evolution's legal action stems from a report commissioned by Playtech, allegedly aimed at undermining its business practices.
Playtech has defended its actions as fair, while Evolution argues the commission's intent was to stifle competition in the U.S. market.
