Evolution has announced that it has agreed a deal to acquire table gaming supplier Galaxy Gaming for $85 million.
The deal comes as Evolution seeks to solidify its position as the leading provider of live casino table games in the online industry.
Speaking of the deal, Martin Carlesund, CEO Evolution said:
“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. 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.”
Matt Reback, President and CEO, Galaxy Gaming added:
“We believe this transaction represents the opportunity to unite two world-class, customer-focused teams in a way that will benefit all stakeholders. 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.”
Galaxy’s FY2024 earnings guidance projects revenue of between $29 million and $30 million, and adjusted EBITDA ranging from $12 million to $13 million for the year.
The deal values the company at a total of $124 million, inclusive of net debt.
Evolution Revenues for H1 up by 16%
The company has also released its quarterly revenue report including figures for the first half of 2024 with a significant rise in revenues driven by live casino gaming which saw growth of 19.8%.
Q2 2024
- Operating revenues – €508.4 million ($553.1 million), up by 15.3%
- EBITDA – €345.8 million ($376.2 million ), up by 10.9%
- Profit – €269.1 million ($292.8 million)
- Earnings per share amounted to €1.28 ($1.39)
H1 2024
- Operating revenues – €1 billion ($1.08 million) up by 16%
- EBITDA – €691.6 million ($752.5 million), up by 13.0%
- Profit – €538.3 million ($634.7 million)
- Earnings per share – €2.55 ($2.77)
Evolution Workers in Georgia go on Strike
News of Evolution’s positive financial results and the acquisition of Galaxy Gaming come shortly after the company’s employees in Georgia took the decision to go on strike.
4,000 of the company’s 7,000 employees in Georgia gave their support to strike action which took place on Friday the 12th of July. The action, supported by the by UNI Global Union Georgian affiliate, Labor, and EVO union, was in relation to demands for improved wages, working conditions and benefits. The employees have also stated that the company fails to treat its local staff with ‘dignity and respect’.
The action came after a 21-day mediation period which ended without agreement from both sides.
Giedre Lelyte, Head of the Gaming at UNI said of the action:
“We stand with our members in their fight for fair treatment and better working conditions. This collective action signifies a strong and unified front against the issues they face. It is imperative that Evolution Gaming stops stalling and engages in meaningful dialogue to resolve these issues as soon as possible.”
Company Facing Multiple Legal Actions
In January of 2024, Consumer class action specialists Federman & Sherwood announced that it has filed a class action lawsuit in the United States District Court for Eastern District of Pennsylvania against Evolution AB (“Evolution”), Martin Carlesund, and Jacob Kaplan.
The suit alleges that from February 14th, 2019 through October 25th, 2023 Evolution made false and/or misleading statements regarding the company and the company’s customers’ compliance with governing laws. The suit also claims that the company made misleading statements in relation to its predicted growth and growth strategies.
In March of 2024, Law firm Pomerantz announced the filing of a class action lawsuit for alleged securities fraud. The action accuses Evolution of engaging in securities fraud or “other unlawful business practices”. The action covers the same time period as Federman & Sherwood’s lawsuit.
Olivia has worked as an editor and writer for major brands across multiple niches. She now focuses on the iGaming and sports betting industries.
Evolution, a leading provider of live casino solutions, has recently completed its acquisition of Galaxy Gaming, a prominent developer and distributor of casino table games and systems. This strategic move is expected to further strengthen Evolution’s position in the gaming industry and expand its product offerings to customers worldwide.
The acquisition of Galaxy Gaming comes at a time when Evolution is experiencing significant growth and success in the market. The company’s live casino games have become increasingly popular among players, and its innovative technology has set new standards for the industry. By adding Galaxy Gaming’s portfolio of table games and systems to its offerings, Evolution is poised to further enhance its product range and provide a more comprehensive gaming experience to its customers.
In addition to the acquisition news, Evolution has also reported its financial results for the first half of the year. The company has seen a strong performance during this period, with revenue and profit figures exceeding expectations. This positive outcome can be attributed to the continued demand for Evolution’s live casino products, as well as the successful integration of recent acquisitions.
Looking ahead, Evolution is focused on further expanding its presence in key markets and continuing to innovate and develop new products to meet the evolving needs of its customers. The company’s acquisition of Galaxy Gaming and its strong financial performance in the first half of the year demonstrate its commitment to growth and success in the gaming industry.
Overall, Evolution’s acquisition of Galaxy Gaming and its impressive H1 results highlight the company’s position as a leader in the live casino sector. With a strong portfolio of products and a track record of success, Evolution is well-positioned to continue its growth and deliver exceptional gaming experiences to players around the world.
