Evolution has officially terminated its acquisition of Galaxy Gaming, marking the end of a two-year effort to secure the US casino games company for $85 million. On July 21, Evolution delivered a notice of termination to Galaxy, just after the July 17 deadline for the deal passed. Under the merger agreement, both parties retained the right to withdraw from negotiations once the set deadlines lapsed.
Evolution's CEO, Martin Carlesund, noted that given Galaxy's size, the transaction was not crucial for Evolution, asserting it would not significantly affect their business, US operations, or long-term plans. The company confirmed it would maintain collaboration with Galaxy through existing commercial agreements, despite the termination fee of $5.2 million that Evolution would pay.
Initially announced in July 2021, the acquisition faced delays due to necessary regulatory evaluations. In addition to these merger discussions, Evolution encountered challenges in obtaining a UK gambling license, which was granted during an ongoing lawsuit.
In response to the situation, Galaxy indicated it had yet to explore its next steps, while Evolution announced the termination, obliging Galaxy to manage the compensation and ongoing collaboration.
Matt Reback, president and CEO of Galaxy, stated that the effort towards finalizing the merger had occupied two years of work. He emphasized that during this time, Galaxy has focused on expanding its range of table game products, venturing into new markets, strengthening partnerships, boosting recurring revenue, and assembling a high-caliber team. He expressed enthusiasm about Galaxy's future trajectory and the continued relationship with Evolution.
