Evolution canceled its attempt to acquire Galaxy Gaming, bringing to a close a two-year project aimed at securing the US casino games company in a contract worth $85 million.
On July 21, Evolution sent a termination notice to Galaxy, signalling the end of the agreement shortly after the 17 July deadline had lapsed. According to the merger contract, the acquirer and the acquiree have the right to pull out of the negotiations once deadlines are over.
Evolution CEO Martin Carlesund said:
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.
Evolution assured that it would continue to collaborate with Galaxy under the companies’ joint efforts in the previous commercial contract, despite announcing that it would pay a termination fee of $5.2 million.
The deal was announced for the first time back in July 2024 but was postponed because of regulatory checks. Besides the merger negotiations, Evolution was also struggling to obtain a UK gambling license, which was granted earlier in the lawsuit.
Over the weekend, Galaxy said it was yet to evaluate its options; however, Evolution announced the termination of the agreement and therefore Galaxy would have to deal with the compensation and its ongoing cooperation.
Matt Reback, president and CEO of Galaxy, said:
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.