Galaxy Gaming Shareholders Approve Acquisition by Evolution
Galaxy Gaming's shareholders have approved the company's acquisition by Evolution Gaming through the latter’s Evolution Malta Holdings Limited subsidiary. At a special meeting held on November 13, Galaxy's stockholders gave their consent to the previously announced deal, which values the acquisition at approximately $85 million in cash.
The Galaxy Gaming booth at a gaming expo. (Source: Proto Images)
LISTEN TO THIS ARTICLE:The transaction is now moving forward with an anticipated completion date set for mid-2025, pending regulatory approval and fulfillment of standard closing conditions. Once finalized, Galaxy Gaming will transition to a privately held company, and its shares will be dropped from public markets.
Related: Evolution Acquires Galaxy Gaming in Landmark DealThis acquisition aligns with Evolution's broader goals within the gaming sector, particularly in its ambition to expand its portfolio and strengthen its foothold in the U.S. market. Earlier statements from Evolution's CEO, Martin Carlesund, highlighted the strategic value of the acquisition, noting that the addition of Galaxy Gaming's innovative products and technology will complement Evolution's current offerings and bolster its role in the online gaming industry.
Galaxy Gaming, a Las Vegas-based developer of casino table games and technology solutions, is known for its specialized products that cater to both physical casinos and the online gaming sector. The company has developed a range of proprietary table games, including popular side bets and progressives, which are widely adopted by casinos. By acquiring Galaxy Gaming, Evolution seeks to leverage these proprietary offerings to enhance its own suite of gaming products and to capitalize on Galaxy's established relationships within the U.S. casino market.
Evolution has stated that it will operate Galaxy Gaming as an independent business unit, while keeping Galaxy's management team and employees. This structure is expected to ensure continuity within Galaxy Gaming while integrating it under the Evolution brand umbrella.
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Perfect Timing
The timing of this acquisition follows a period of growth for Galaxy Gaming. On the same day as the shareholder vote, the company announced its financial results for the third quarter of 2024, which showed strong revenue growth of 25% compared to the same period in 2023.
Galaxy's revenue for the quarter reached $7.7 million, driven by increased demand for its gaming products. However, the company also reported a net loss of $2.2 million for the quarter. This was attributed to a 50% increase in expenses, primarily due to legal costs associated with acquisitions and internal labor expenses. Despite the net loss, the positive revenue trajectory highlights the company's value proposition and its potential to contribute to Evolution's ongoing expansion plans.
For Galaxy Gaming, the acquisition by a global powerhouse like Evolution provides an opportunity to further scale its operations and expand the reach of its products. Evolution's resources and industry expertise could accelerate Galaxy Gaming's growth and innovation within the competitive gaming sector.
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