Las Vegas-based Galaxy Gaming Inc. on Monday closed on its previously announced deal to acquire Progressive Games Partners LLC, a table-games developer and iGaming provider based on the Isle of Man.
Galaxy first announced the transaction in February.
Under terms of the deal, Galaxy will pay $12.425 million to acquire all of the equity interests in PGP. Of that amount, at least $6.425 million but no more than $10.425 million will be paid in cash; any amounts not paid in cash will be paid in newly issued shares of Galaxy’s common stock valued at $1.91 per share.
President and CEO Todd Cravens said the worldwide pandemic would make the deal even more viable for Galaxy.
“The world has changed dramatically since we signed the purchase agreement for this deal back in February,” Cravens said. “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 U.S. revenues in the second quarter of 2020 increasing 250 percent over the prior year.
Cravens expects the company to develop more iGaming products.
“We believe that more U.S. states will consider legalizing iGaming as a way to prevent the tax revenue losses that occur when brick-and-mortar casinos are closed,” he said. “We look forward to working more closely with our iGaming operators as we bring our existing library and our pipeline of new products online.”