Las Vegas headquartered Galaxy Gaming has closed its $12.425m acquisition of Progressive Games Partners, anticipating that the transaction will be immediately accretive to earnings per share.
First announced in February, it was said that 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.
Having been operational in igaming since 2003, PGP owns the exclusive worldwide online rights to a suite of proprietary casino table games, including Galaxy’s.
“Galaxy has a great opportunity with the acquisition of PGP,” said Chris Reynolds, who has been at the helm as PGP’s CEO since its inception. “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 that the purchase is strategically advantageous due to the enhanced exposure to the igaming market that will be felt, which is forecasted to bring significant growth, especially in the US.
Furthermore, it eliminates the distribution fee that Galaxy pays to PGP on Galaxy-owned games and gives the group additional igaming licensing revenue from titles owned by other licensors.
“The world has changed dramatically since we signed the purchase agreement for this deal back in February,” explained Todd Cravens, Galaxy’s president and CEO. “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.”