Galaxy Gaming is, under certain conditions including regulatory approvals, to purchase all the equity interests in Progressive Games Partners for $12,425 m.
Of the sum, at least $6,425 m will be paid in cash, but not more than $10,425 m, with any amount not paid as such being compensated by newly issued shares for Galaxy’s common stock valued at $1.91 each.
In addition to allowing the casino table games distributor to ensure further sustained growth, Galaxy expects the acquisition of PGP to be accretive to earnings upon close.
It’s believed that the transaction will allow the firm to take advantage of the opportunity offered by the rapidly expanding online casino market in the US more efficiently and effectively, as well as to gain exposure to new markets and opportunities through the newly acquired online clientele.
Todd Cravens, Galaxy’s President and CEO said: “We see online gaming as a key development and expansion area for our business and believe that our great table games will be received well as more and more markets open igaming.
“This transaction positions us in several ways to control our own destiny in online gaming. First, we get direct relationships with the major online players. Second, we get full control of how our own content – and the content we get from others – is licensed to those operators. And we are taking all these steps as online gaming is expanding across the United States. We’re excited by this opportunity and challenge.”
PGP holds the exclusive rights to a robust suite of exclusive casino table games online worldwide. In addition, through its other licensors, it lauds a large part of its success at exclusive online distribution rights for Galaxy’s gaming content, and many other titles such as Perfect Pairs and Caribbean Stud Poker.
Chris Reynolds, PGP’s CEO said: “Galaxy’s games have been our most important revenue producers. I have no doubt that those games will continue to enjoy great popularity and success in the regulated online gaming markets, and we are already developing our strategy and relationships to ensure that they will be well positioned to participate in the expanding US market. I look forward to working with Todd and the Galaxy team to continue as one entity the success we have had separately.”