Evolution Terminates $85M Galaxy Gaming Acquisition
The acquisition, announced in 2024, was originally expected to close by mid-2025. Evolution has now decided to walk away and pay Galaxy a termination fee of over $5 million.
Evolution has terminated its planned acquisition of Galaxy Gaming after the companies failed to obtain the remaining gaming regulatory approvals before the merger agreement’s outside date.
Both companies announced the termination on July 22. The companies were unable to close the deal by the July 17 outside date, allowing either party to terminate the agreement under its terms.
Two-Year Approval Process Ends Without a Deal
Evolution agreed to acquire Galaxy Gaming for approximately $85 million in July 2024. Through the deal, Evolution planned to expand its portfolio of casino table games and side bets through Galaxy’s proprietary content.
Galaxy shareholders approved the transaction in late 2024, but the companies were unable to secure all required gaming regulatory approvals within the original timetable.
In 2025, Evolution and Galaxy extended the merger agreement by one year, moving the outside date from July 18, 2025, to July 17, 2026. During the Q4 2025 earnings call, CEO Martin Carlesund said the company expects to close the deal in time.
Those approvals ultimately did not materialize before the revised deadline.
Under the terms of the merger agreement, Evolution will pay Galaxy Gaming a termination fee of approximately $5.23 million.
Evolution Had Already Downplayed the Deal’s Importance
Evolution had already signaled that the acquisition was no longer a strategic priority during its second-quarter 2026 earnings call on July 17, the same day as the agreement deadline.
In his prepared quarterly remarks, Carlesund told investors:
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 U.S. operations, or our long-term ambitions.”
During the earnings call, Carlesund declined to answer or discuss details, but acknowledged that the agreement had reached its contractual deadline.
We are on the outside date, meaning that the time period for closure is ending actually today. We will now continuously evaluate. We put a lot of resource and focus to close and handle the administrative burden that is related to this transaction.”
He reiterated that the acquisition was not significant to Evolution because of Galaxy’s size. Carlesund added that the outcome would not affect the company’s business, U.S. operations or long-term strategy.
Commercial Partnership Will Continue
Despite ending the acquisition, the companies said their existing commercial relationship will remain unchanged.
In 2023, Galaxy and Evolution announced a 10-year extension to their partnership. Through the collaboration, Evolution gains access to Galaxy’s table games and technology, including its patented side bets. Some of Galaxy’s most popular products include the 21+3 blackjack side bet, as well as Perfect Pairs and Lucky Ladies side bets.
Galaxy said it remains focused on executing its standalone strategy and supporting customers through its existing product portfolio.
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