Evolution cancels $85M acquisition of Galaxy Gaming

Evolution terminated its planned $85 million acquisition of Galaxy Gaming after the companies failed to obtain the remaining gaming regulatory approvals before the merger agreement’s outside date. Both firms announced the termination on July 22, 2026.

Under the terms of the merger agreement, Evolution will pay Galaxy a termination fee of about $5.23 million.

The acquisition was announced in July 2024 and was approved by Galaxy shareholders later that year. The deal was originally expected to close by mid-2025. In 2025 the companies extended the merger agreement and moved the outside date from July 18, 2025 to July 17, 2026.

Because the outstanding regulatory clearances were not secured before the revised deadline, either party had the right to end the agreement. Evolution and Galaxy confirmed the pact was terminated on July 22.

On the company’s second-quarter 2026 earnings call on July 17, CEO Martin Carlesund said in prepared remarks: “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.” He added the outcome “has no material impact on our existing business, our U.S. operations, or our long-term ambitions.”

With the agreement ended, Evolution will pay the agreed termination fee and cease pursuing the purchase.

The termination does not affect the companies’ commercial relationship. In 2023 the firms extended a separate commercial partnership for 10 years, under which Evolution retains access to Galaxy’s table games and proprietary side bets, including 21+3, Perfect Pairs and Lucky Ladies.

Galaxy said it will continue to execute its standalone strategy and support its customers with its existing products.