Evolution has formally terminated its merger agreement to acquire US table games supplier Galaxy Gaming. The decision ends a transaction that had remained pending for two years as the companies sought regulatory approvals.
The Swedish gaming technology provider confirmed that its subsidiary, Evolution Malta Holding Limited, has issued notice to terminate the merger agreement with Galaxy Gaming and Galaga Merger Sub. Under the terms of the agreement, Evolution is required to pay Galaxy Gaming a termination fee of $5.23m, which the company said it intends to do.
Although the acquisition will no longer proceed, Evolution emphasised that it expects to continue working with Galaxy Gaming through the companies' existing commercial partnership.
The decision follows the expiry of the latest merger deadline on 17 July 2026. Earlier this month, Galaxy Gaming said both parties were evaluating their options after failing to obtain all necessary regulatory approvals before the extended deadline. At the time, the agreement had not yet been terminated and a further extension remained possible.
The acquisition was originally announced in July 2024, with Evolution agreeing to purchase all outstanding Galaxy Gaming shares for $3.20 per share in cash, representing an equity value of approximately $85m. The transaction was intended to strengthen Evolution's presence in the US market and expand its portfolio of proprietary table games across both land-based and online gaming.
Despite receiving some regulatory approvals during the review process, the deal remained subject to additional approvals in several US gaming jurisdictions. The parties had previously extended the closing deadline to allow more time for those reviews to conclude.
Speaking alongside Evolution's recent second-quarter results, Chief Executive Martin Carlesund acknowledged the lengthy approval process, noting that the company had invested considerable time and resources in pursuing the acquisition. He also indicated that, given Galaxy Gaming's size relative to Evolution, the transaction would not have had a material impact on Evolution's business, US operations or long-term growth strategy.
The proposed acquisition, first announced in July 2024, valued Galaxy Gaming at approximately $85m and had been extended several times while awaiting regulatory approvals
