Galaxy Gaming has announced plans to purchase Progressive Games Partners.
The casino table game developer and distributor, Galaxy Gaming, has agreed a deal to purchase Progressive Games Partners (PGP) for $12.4m.
Both companies have worked together for several years and PGP has had the exclusive online distribution rights for Galaxy’s gaming content.
What’s covered in the deal?
Under the agreement, which is still subject to regulatory approval and conditions, Galaxy will acquire 100% of the equity interests in PGP, which currently owns the exclusive global online rights to several proprietary casino table games.
The agreement states that Galaxy will pay between $6.4m and $10.4m in cash to acquire PGP. The remaining amount will be paid in newly issued shares of common Galaxy stock which is valued at $1.91 per share.
According to the announcement, the deal will allow Galaxy to exploit the opportunity provided by the rapidly expanding online casino market in the US by building upon their relationships with casinos groups and by increasing exposure in new markets.
Galaxy’s chief executive and president, Todd Cravens, said: “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.
“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.”
PGP chief executive Chris Reynolds said: “Galaxy’s games have been our most important revenue producers. 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.”