Evolution has officially terminated its $85 million acquisition of Galaxy Gaming, concluding a two-year effort to secure the US casino games company. On July 21, Evolution sent a notice to Galaxy, which marked the end of the acquisition agreement shortly after the deadline on July 17 expired. According to the terms of the merger, both parties had the right to withdraw once the deadlines passed.
Evolution's CEO, Martin Carlesund, remarked on the situation, stating, "Due to Galaxy’s size, the transaction is not significant for Evolution. The outcome has no material impact on our existing business, our US operations, or our long-term ambitions."
Despite the cancellation, Evolution plans to maintain its partnership with Galaxy under their previous commercial contract, with a termination fee of $5.2 million payable to Galaxy as part of the exit.
The acquisition was initially announced in July 2024 but faced delays due to regulatory scrutiny. In addition to the merger complications, Evolution was also pursuing a UK gambling license, which it recently received after navigating through a legal challenge.
Following the termination, Galaxy expressed that it had yet to assess its options moving forward. In response, Matt Reback, Galaxy’s president and CEO, noted, "For two years, we have been working with Evolution towards a closing of the merger agreement. 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 calibre individuals possible. We are excited about the trajectory of the company, and we look forward to a continued relationship with Evolution."
