Galaxy Gaming is to purchase all of the equity interests in Progressive Games Partners for $12.425m subject to certain conditions, including regulatory approvals.
Of the consideration at least $6.425m, but no more than $10.425m, will be paid in cash, with any amount not paid as such being done so through newly issued shares of Galaxy’s common stock valued at $1.91 each.
Galaxy expects that the acquisition of PGP will be accretive to earnings upon closing, in addition to enabling the distributor of casino table games to ensure further sustained growth.
It is said that the transaction will allow the firm to more efficiently and effectively exploit the opportunity provided by the rapidly expanding online casino market in the US, as well as gaining exposure to new markets and opportunities through the newly acquired online clientele.
“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,” explained Todd Cravens, Galaxy’s President and CEO.
“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 owns the exclusive worldwide online rights to a comprehensive suite of proprietary casino table games. Furthermore, it lauds a large part of its success to exclusive online distribution rights for Galaxy’s gaming content, as well as other titles such as Perfect Pairs and Caribbean Stud Poker through its other licensors.
“Galaxy’s games have been our most important revenue producers,” stated Chris Reynolds, PGP’s CEO. “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.”