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Evolution AB announced it has terminated its merger agreement with Galaxy Gaming, Inc. and Galaga Merger Sub, Inc.
In a statement released this morning, the company confirmed that while the deal has been called off, it intends to continue its commercial partnership with Galaxy Gaming under their existing arrangements, which both companies signed in 2023 and is expected to run for 10 years.
As part of the termination, Evolution is required to pay Galaxy Gaming a fee of $5,234,678, which it said it will honor.
Deal collapses after two years and lengthy regulatory review
Evolution’s plan to acquire Galaxy Gaming was first unveiled in July 2024 and valued at about $85 million. The agreement had already been delayed once, extended in late 2025 to give regulators more time to assess the deal.
While some approvals were secured, including from the Mississippi Gaming Commission, others, such as Nevada had not signed off.
Hints of the collapse surfaced in Evolution’s Q2 results, where CEO Martin Carlesund noted the strain of the drawn‑out process. “Two years have passed, and Evolution has spent significant time, effort and resources handling the rather large amount of administration required to close this acquisition,” he said.
Carlesund described Galaxy as “a great company” but stressed that the deal’s size meant it was not significant for Evolution. “The outcome has no material impact on our existing business, our US operations, or our long‑term ambitions,” he added.
Galaxy looking forward to ‘continued relationship’ with Evolution
Galaxy Gaming released its own statement on 20 July, just before Evolution confirmed the termination of the merger. The company noted that the agreement had set an outside date of 17 July 2026, allowing either side to walk away if closing conditions were not met.
While Galaxy stated that it was weighing its options, including asking for another extension or ending the agreement itself, Evolution has stepped up to terminate the deal itself.
President and CEO Matt Reback reflected on the two‑year process, saying, “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.”
