Supplier Giant Cancels $85M Takeover, Citing Administrative Hurdles and Insignificant Impact on Long-Term Strategy
Evolution has officially pulled the plug on its planned acquisition of Galaxy Gaming after prolonged regulatory delays stalled the transaction. The supplier giant issued a formal notice of termination for the merger agreement on Tuesday, following comments last week from CEO Martin Carlesund emphasizing that the deal was not vital to the business. Under the terms of the termination, Evolution will be required to pay Galaxy Gaming a $5.2 million termination fee.
Background and Executive Commentary on the Canceled Deal
Originally announced in July 2024, Evolution had agreed to acquire all outstanding shares of Galaxy Gaming in a transaction valued at approximately $85 million. However, on Monday, Galaxy Gaming revealed that two essential gambling regulatory approvals had not yet been secured. While Galaxy stated it was evaluating options, including seeking another deadline extension or terminating the merger itself, Evolution elected to move on.
Reflecting on the conclusion of the two-year administrative effort, Evolution CEO Martin Carlesund noted in Evolution’s Q2 results press release:
“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.”
“Galaxy is a great company; however, due to its size, the transaction is not significant for Evolution. The outcome has no material impact on our existing business, our US operations, or our long-term ambitions.”
Despite the acquisition falling through, both companies maintain their existing commercial ties, anchored by a 10-year licensing extension agreed upon in 2023.
Evolution Q2 Financial Results
Alongside the merger cancellation, Evolution released its financial performance figures for the second quarter. Net revenue dipped 1.2% year-on-year to €517.8 million ($591.4 million), driven primarily by a 3.7% revenue contraction in Asia. EBITDA similarly decreased to €341 million, down from €345.3 million in the same period of fiscal year 2025.
These declines occurred despite positive momentum elsewhere, including a 3.5% sequential recovery in European revenue and a 26.3% year-on-year surge in Latin American revenue.
Summarizing the company’s trajectory, Carlesund expressed optimism:
“Revenue and margin are moving in the right direction compared to the first quarter, cost control remains strong, cash flow is improving and we continue to expand in key markets while executing on our product roadmap.”
“The road is almost never straight, but what matters is that we are moving forward. Some curves are harder than others, but they can also be fun. And the same goes for Evolution.”
