Galaxy Gaming closes PGP acquisition
Las Vegas-based Galaxy Gaming has closed its $12.4m acquisition of all Progressive Games Partners’ equity interests, a deal expected to incrementally grow earnings per share.
Having been operational in iGaming since 2003, PGP owns the exclusive worldwide online rights to a suite of proprietary casino table games, including Galaxy’s, and has strong relationships with many of the leading iGaming providers.
The transaction, first announced in February, increases Galaxy’s exposure to the iGaming market, which is forecasted to see significant growth, especially in the US.
“Our casino clients in the physical world have been very hard-hit by the COVID-19 crisis and are generally struggling to get back to business levels they enjoyed before the lockdowns. By contrast, the iGaming business was a significant beneficiary of the shutdown, with US revenues in the second quarter of 2020 increasing 250% over the prior year,” said Galaxy president and CEO Todd Cravens.
“We believe that more US states will consider legalising iGaming as a way to prevent the tax revenue losses that occur when brick-and-mortar casinos are closed.”
PGP CEO Chris Reynolds, added: “Galaxy has a great opportunity with the acquisition of PGP. Many of the titles that are in the PGP portfolio originated in the US land-based world. Since US iGaming operators will want to offer to their online patrons many of the same games that are popular in the physical world, there should be good adoption of the PGP content in the US.”
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