Evolution has officially ended its pursuit to acquire Galaxy Gaming, concluding a two-year effort aimed at securing the US casino games company for $85 million. On July 21, Evolution submitted a termination notice to Galaxy, effectively ceasing the agreement shortly after the July 17 deadline passed. According to the merger contract, both parties have the option to withdraw from negotiations once set deadlines expire.
Martin Carlesund, CEO of Evolution, commented 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 termination, Evolution intends to maintain its collaboration with Galaxy under the existing commercial contract. However, the company will incur a termination fee of $5.2 million as part of this process.
This acquisition deal was originally announced in July 2024 but faced postponements due to regulatory reviews. In addition to the merger discussions, Evolution was navigating challenges related to obtaining a UK gambling license, which was eventually granted earlier this month.
Following the announcement of the termination, Galaxy stated that it has yet to assess its next steps. In light of the situation, Evolution's termination means Galaxy will need to manage the termination compensation and plan for its ongoing collaboration.
Matt Reback, president and CEO of Galaxy, expressed his sentiments about the situation, stating, "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."
