Galaxy Gaming agrees deal to acquire its iGaming partner for $12.4m28th February 2020 9:03 am GMT
Las Vegas-based gaming supplier Galaxy Gaming has entered into an agreement to acquire its iGaming partner Progressive Games Partners (PGP) for $12.4m.
PGP has held the exclusive online distribution rights for Galaxy’s gaming content for a number of years, with the acquisition set to provide Galaxy with direct control over its iGaming activities.
Subject to regulatory approval, Galaxy will pay $12.4m to acquire 100 per cent of the equity interests in PGP, with between $6.4m and $10.4m to be paid in cash and the remainder to be paid in newly issued shares in Galaxy at $1.91 per share.
“We see online gaming as a key development and expansion area for our business and believe that our great table games will be received well as more and more markets open iGaming,” said Galaxy Gaming president and CEO Todd Cravens. “This transaction positions us in several ways to control our own destiny in online gaming.
“First, we get direct relationships with the major online players. Second, we get full control of how our own content – and the content we get from others - is licensed to those operators. And we are taking all these steps as online gaming is expanding across the United States. We’re excited to by this opportunity and challenge.”
PGP chief executive Chris Reynolds said: “Galaxy’s games have been our most important revenue producers. I have no doubt that those games will continue to enjoy great popularity and success in the regulated online gaming markets, and we are already developing our strategy and relationships to ensure that they will be well positioned to participate in the expanding US market.
“I look forward to working with Todd and the Galaxy team to continue as one entity the success we have had separately.”
PGP also holds the rights to a suite of proprietary casino table games, including Perfect Pairs and Caribbean Stud Poker.