Galaxy Gaming, based in Las Vegas, has completed its $12,425 m Progressive Games Partners purchase, expecting that the deal would instantly accretive to earnings per share.
First announced in February, it was said that the payment would be paid in cash at least $6,425 m, but not more than $10,425 m, with any amount not paid as such being made by newly issued common stock shares of Galaxy priced at $1,91 each.
Operating in igaming since 2003, PGP owns exclusive online rights to a suite of exclusive casino table games, including Galaxy’s, worldwide.
Chris Reynolds, who has been at the helm as PGP’s CEO since its inception said: “Galaxy has a great opportunity with the acquisition of PGP. Many of the titles that are in the PGP portfolio originated in the US land-based world.
“Since US igaming operators will want to offer to their online patrons many of the same games that are popular in the physical world, there should be good adoption of the PGP content in the US.
“I look forward to working with Todd and the rest of the Galaxy team in serving the rapidly growing US igaming market while maintaining the strong relationships we have in the UK and Europe.”
Galaxy says buying is strategically beneficial because of the increased exposure to the igaming market that will be felt, which is predicted to bring substantial growth , especially in the US.
In turn, it reduces the sales charge that Galaxy charges to PGP on Galaxy-owned games, and provides the company with additional igaming licensing revenue from other licensors’ titles.
Todd Cravens, Galaxy’s president and CEO said: “The world has changed dramatically since we signed the purchase agreement for this deal back in February. Our casino clients in the physical world have been very hard-hit by the COVID-19 crisis and are generally struggling to get back to business levels they enjoyed before the lockdowns.
“By contrast, the igaming business was a significant beneficiary of the shutdown, with US revenues in the second quarter of 2020 increasing 250 per cent over the prior year. We believe that more US states will consider legalising igaming as a way to prevent the tax revenue losses that occur when brick-and-mortar casinos are closed.
“We look forward to working more closely with our igaming operators as we bring our existing library and our pipeline of new products online.”