By BBBB
Evolution has announced that it has agreed a deal to acquire table gaming supplier Galaxy Gaming for $85 million.
The deal comes as Evolution seeks to solidify its position as the leading provider of live casino table games in the online industry.
Speaking of the deal, Martin Carlesund, CEO Evolution said:
“We are thrilled to announce the acquisition of Galaxy Gaming, which represents a significant milestone in our mission to provide unparalleled gaming experiences to our customers. Galaxy Gaming’s exceptional products and technology complement our existing portfolio and strengthen our strategic position.
Evolution intends to retain the management and employees and also plans to operate Galaxy Gaming as a separate and independent business unit.”
Matt Reback, President and CEO, Galaxy Gaming added:
“We believe this transaction represents the opportunity to unite two world-class, customer-focused teams in a way that will benefit all stakeholders. It combines Galaxy Gaming’s thriving land-based business, driven by our industry-leading games and progressive technologies, with Evolution’s global reach and innovative online gaming leadership. For years, our collaboration has successfully delivered popular games like 21+3® and Lucky Ladies® to millions of players in regulated iGaming markets globally.
This acquisition by Evolution empowers Galaxy to sustain and maintain its independence while continuing to focus on growth and expanding its operations, leveraging Evolution’s operational and financial strength to facilitate product sharing and drive cutting-edge omni-channel innovation.”
Galaxy’s FY2024 earnings guidance projects revenue of between $29 million and $30 million, and adjusted EBITDA ranging from $12 million to $13 million for the year.
The deal values the company at a total of $124 million, inclusive of net debt.
Evolution Revenues for H1 up by 16%
The company has also released its quarterly revenue report including figures for the first half of 2024 with a significant rise in revenues driven by live casino gaming which saw growth of 19.8%.
Q2 2024
- Operating revenues – €508.4 million ($553.1 million), up by 15.3%
- EBITDA – €345.8 million ($376.2 million ), up by 10.9%
- Profit – €269.1 million ($292.8 million)
- Earnings per share amounted to €1.28 ($1.39)
H1 2024
- Operating revenues – €1 billion ($1.08 million) up by 16%
- EBITDA – €691.6 million ($752.5 million), up by 13.0%
- Profit – €538.3 million ($634.7 million)
- Earnings per share – €2.55 ($2.77)
Evolution Workers in Georgia go on Strike
News of Evolution’s positive financial results and the acquisition of Galaxy Gaming come shortly after the company’s employees in Georgia took the decision to go on strike.
4,000 of the company’s 7,000 employees in Georgia gave their support to strike action which took place on Friday the 12th of July. The action, supported by the by UNI Global Union Georgian affiliate, Labor, and EVO union, was in relation to demands for improved wages, working conditions and benefits. The employees have also stated that the company fails to treat its local staff with ‘dignity and respect’.
The action came after a 21-day mediation period which ended without agreement from both sides.
Giedre Lelyte, Head of the Gaming at UNI said of the action:
“We stand with our members in their fight for fair treatment and better working conditions. This collective action signifies a strong and unified front against the issues they face. It is imperative that Evolution Gaming stops stalling and engages in meaningful dialogue to resolve these issues as soon as possible.”
Company Facing Multiple Legal Actions
In January of 2024, Consumer class action specialists Federman & Sherwood announced that it has filed a class action lawsuit in the United States District Court for Eastern District of Pennsylvania against Evolution AB (“Evolution”), Martin Carlesund, and Jacob Kaplan.
The suit alleges that from February 14th, 2019 through October 25th, 2023 Evolution made false and/or misleading statements regarding the company and the company’s customers’ compliance with governing laws. The suit also claims that the company made misleading statements in relation to its predicted growth and growth strategies.
In March of 2024, Law firm Pomerantz announced the filing of a class action lawsuit for alleged securities fraud. The action accuses Evolution of engaging in securities fraud or “other unlawful business practices”. The action covers the same time period as Federman & Sherwood’s lawsuit.
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