Evolution has officially terminated its plans to acquire Galaxy Gaming, effectively ending a two-year effort to secure the US casino games company for $85 million. On July 21, Evolution sent a termination notice to Galaxy, marking the conclusion of their negotiations after a deadline expired on July 17. The merger agreement stipulated that both parties had the option to withdraw if the deadline passed without action.
Martin Carlesund, CEO of Evolution, stated that the deal’s cancellation would not significantly affect the company due to Galaxy's relatively small size in its portfolio. He emphasized that the outcome will not have a material impact on Evolution’s current operations in the US or its future plans. Despite the termination of the acquisition, Evolution committed to maintaining its cooperation with Galaxy under their existing commercial agreement, even as it prepares to pay a termination fee of $5.2 million.
Initially announced in July 2021, the acquisition faced delays primarily due to regulatory reviews. Additionally, Evolution encountered challenges in obtaining a UK gambling license, which was finally granted amidst ongoing regulatory scrutiny.
In a statement released over the weekend, Galaxy indicated that it was considering its next steps after Evolution’s announcement. Matt Reback, president and CEO of Galaxy, expressed the company’s commitment to growth over the last two years, focusing on expanding its range of table games, entering new markets, strengthening partnerships, and enhancing its recurring revenue streams. Reback conveyed enthusiasm regarding Galaxy's future and optimism for their continued relationship with Evolution.
