Evolution has backed out of the acquisition of Galaxy Gaming, valued at 85 million US dollars. The deal, announced in July 2024, is now canceled, and Evolution will have to pay a compensation of 5.2 million.
Evolution announced the cancellation of the deal today (July 21). The details behind the decision have not been disclosed, although the company stated that it hopes to continue collaborating with Galaxy within the framework of the “strong business relationship” that unites them.
As a result of the cancellation of the deal, Evolution will have to pay a compensation of 5.2 million dollars to Galaxy.
The agreement, first disclosed in July 2024, set July 17, 2026 as the deadline to complete the acquisition. Once the deadline was reached, both Evolution and Galaxy could withdraw from the acquisition (subject to payment of financial compensation).
The completion of the transaction was expected for 2025, but the review and processing of the merger by regulatory bodies suffered significant delays.
However, some regulatory authorities, such as the Mississippi Gaming Commission (United States), had already given the operation the green light.
Last week, Evolution CEO Martin Carlesund downplayed the impact of a potential cancellation. He said that, due to Galaxy’s size, the merger would not have a significant impact on Evolution’s business, although he described Galaxy as a “great company.”
“The transaction is not significant for Evolution. The outcome does not have a material impact on our current business, our US operations, and our long-term ambitions,” Carlesund stated.
The news comes after Evolution agreed to pay 4.75 million pounds to the UK Gambling Commission to conclude the review process of its license, initiated in December 2024.
Second quarter results
Evolution recorded a slight drop in revenue during the second quarter of 2026, although profit increased slightly, as the Swedish group maintained its margins.
Net revenue decreased by 1.2% to 517.8 million euros, compared to 524.3 million euros the previous year. EBITDA totaled 341.0 million euros, down from 345.3 million euros, with the margin remaining stable at 65%.
Profit for the period grew to 251.4 million euros, from 248.3 million euros, and earnings per share increased to 1.27 euros from 1.22 euros.
“Overall, I am satisfied with the quarter’s performance. Revenue and margin are moving in the right direction compared to the first quarter, cost control remains solid, cash flow is improving, and we continue to expand into key markets while executing our product roadmap,” Carlesund noted.
After several quarters of declines, Europe grew by 3.5%, thanks to strength in game shows and native-language tables. However, low channelization rates remain a concern.
Latin America, on the other hand, reported year-on-year growth of 26.3%, supported by the relaunch of a recently acquired Argentine studio and the localization of Ice Fishing for Brazil, while North America grew by 9.5% compared to 2025, as a result of the launch of Monopoly Live in four states, a second studio in Michigan, and expansion into Alberta following its transition to a regulated market.