Galaxy Gaming, Inc., a developer and distributor of casino table games and enhanced systems, announced last week that it will buy 100 percent of the equity interests in Progressive Games Partners LLC (PGP). PGP owns the worldwide online rights to a comprehensive suite of proprietary casino table games.
Since signing its first license agreement with Cryptologic in 2003, PGP has worked with leading online operators and platform providers. An integral part of its success has been founded upon its exclusive online distribution rights for Galaxy’s gaming content, as well as other games such as Perfect Pairs and Caribbean Stud Poker through its other licensors.
Pursuant to the purchase agreement, Galaxy will pay $12.425 million to acquire all the equity interests in PGP. At least $6.425 million will be paid in cash, and the rest in newly issued shares of Galaxy’s common stock valued at $1.91 per share, according to a news release.
This transaction will enable Galaxy to build on many close relationships with U.S. casino groups that are expanding online, and gain exposure to new markets and opportunities through 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,” said 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 to by this opportunity and challenge.”
“Galaxy’s games have been our most important revenue producers,” said PGP CEO Chris Reynolds. “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.”
Completion of the transaction is subject to conditions, including regulatory approvals.
