Evolution will pay $5.2 million to exit an agreement that was looking expensive in light of Galaxy’s recent share price
Evolution is paying a termination fee of $5.2 million to Galaxy Gaming after ending their merger agreement.
Evolution announced that it has terminated the merger agreement on Tuesday (July 21), one day after the expiry of the deadline for meeting the closing conditions of the transaction.
As a result of the termination, Evolution will pay a termination fee of $5,234,678 to Galaxy Gaming.
Galaxy Gaming had agreed the merger in July 2024, valuing the business at $85 million or $3.20 per share, with the transaction originally expected to complete in mid-2025. This original deadline was extended last year to July 17, 2026, with Evolution now deciding against any further extensions.
Galaxy Gaming said in a statement late-Monday that two remaining gaming regulatory approvals required for the closing of the merger have not been obtained.
Commenting ahead of the termination announcement by Evolution, Galaxy Gaming chief executive Matt Reback 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 caliber individuals possible. We are excited about the trajectory of the company, and we look forward to a continued relationship with Evolution.”
Evolution also said that it expects to continue working with Galaxy Gaming within the framework of their existing strong commercial relationship.
Shares in Evolution AB (STO:EVO) were trading 1.37 per cent lower at SEK704.60 per share in Stockholm Tuesday morning.
Shares in Galaxy Gaming Inc. (OTC: GLXZ) were down 8.19 per cent at $1.57 per share, which is less than half of their value under the merger agreement.