Evolution announced that its M&A arrangement with Galaxy Gaming has fallen through. This comes shortly after the agreement’s official deadline expired.
The Merger Will No Longer Happen
A few days ago, Evolution published its Q2 report, outlining an increase in profit, despite a slight drop in revenue. In addition to disclosing its financial results, the company disclosed the fact that the agreed closing period for its proposed acquisition of Galaxy Gaming has expired. As a result, from that period on, either side was allowed to choose whether to terminate the deal.
For reference, the original merger deal’s deadline was set to expire in November 2025. Back then, both companies agreed to extend it to July 17, 2026, in order to secure necessary regulatory approvals. At that time, Evolution leaders were convinced that the deal would come to fruition. However, things didn’t go according to these plans.
On July 21, Evolution stated that the merger deal is not happening. In its announcement, the company confirmed that it has given notice of termination of the merger agreement between Evolution Malta Holding Limited, Galaxy Gaming, and Galaga Merger Sub.
Evolution added that the failed merger is not expected to affect the two parties’ existing business relationship and that the two will continue working together.
It was also added that, per the terms of the failed deal, Evolution is required to pay Galaxy Gaming a termination fee of $5,234,678. The former company added that it fully intends to comply with this payment.
Evolution’s Q2 Performance Showed Improvement
As mentioned, Evolution just published its financial report for the second quarter of the year. The company’s net revenues and EBITDA for the period experienced declines to $591.9 million and $389.9 million, respectively.
At the same time, the company’s profit and earnings per share increased to $287.4 million and $1.45, respectively.
According to Evolution’s leadership, the company experienced improvements in all regions, but Asia, where it continued to see setbacks. CEO Martin Carlesund acknowledged that “the road is almost never straight,” but said that he was pleased with his team’s broader performance.
In other news, Evolution recently reached a $6.4 million settlement with the UK Gambling Commission in relation to a violation committed by the company in 2024. Evolution emphasized that it remains committed to upholding the highest standards of compliance.