Evolution has entered into an agreement to acquire Las Vegas-headquartered gaming supplier Galaxy Gaming in a deal worth $85 million.

Evolution will acquire all of the outstanding shares of Galaxy Gaming for $3.20 per share in cash, which represents a premium of 124 per cent over Galaxy Gaming’s closing share price on Wednesday 17 July.

The acquisition solidifies Evolution’s presence in the United States, where Galaxy Gaming holds 28 licences, and enhances its position as a leading licensor of proprietary tables games to the iGaming industry.

The deal values Galaxy Gaming at a total equity value of $85 million, and $124 million including net debt.

The two companies already work together, bring games such as 21+3 and Lucky Ladies to regulated iGaming markets worldwide.

“We are thrilled to announce the acquisition of Galaxy Gaming, which represents a significant milestone in our mission to provide unparalleled gaming experiences to our customers,” said Evolution CEO Martin Carlesund. “Galaxy Gaming’s exceptional products and technology complement our existing portfolio and strengthen our strategic position.”

“Evolution intends to retain the management and employees and also plans to operate Galaxy Gaming as a separate and independent business unit.”

Galaxy Gaming expects to generate net revenue of between $29 million and $30 million for fiscal year 2024, with adjusted EBITDA of between $12 million and $13 million.

“We believe this transaction represents the opportunity to unite two world-class, customer-focused teams in a way that will benefit all stakeholders,” said Galaxy Gaming president and CEO Matt Reback. “It combines Galaxy Gaming’s thriving land-based business, driven by our industry-leading games and progressive technologies, with Evolution’s global reach and innovative online gaming leadership.

“For years, our collaboration has successfully delivered popular games like 21+3 and Lucky Ladies to millions of players in regulated iGaming markets globally. This acquisition by Evolution empowers Galaxy to sustain and maintain its independence while continuing to focus on growth and expanding its operations, leveraging Evolution’s operational and financial strength to facilitate product sharing and drive cutting-edge omni-channel innovation.”

The transaction is subject to customary closing conditions, including Galaxy Gaming stockholder approval and certain required gaming regulatory approvals, and is expected to close in mid-2025.

Shares in Evolution AB (STO:EVO) were trading 8.65 per cent lower in Stockholm at SEK1,062.00 per share on the news and release of the company’s results for the second quarter. Shares in Galaxy Gaming Inc. (OTCQB:GLXZ) closed 1.40 per cent lower at $1.41 per share in New York Thursday.