As one of the major developers of casino table games, Galaxy Games has been a fixture in the gaming industry for years now. The company continues to expand its operation too, and its latest move will take Galaxy into the iGaming sector.
Through a recent press release, the company announced plans to purchase Progressive Games Partners LLC (PGP). Galaxy will buy 100% of PGP, and this major acquisition will have many ramifications for real money online gambling.
PGP currently owns the exclusive online rights to a comprehensive suite of proprietary table games, and now, these rights will expand internationally.
How Is Galaxy Games Expanding?
That company has been active for some time now, and its first license agreement dates all the way back to 2003. Since then, PGP has continued to develop relationships with the biggest casino operators in the world, and much of the company’s success is due to the exclusive relationship with Galaxy Gaming.
PGP already had exclusive online distribution rights to all of Galaxy’s gaming content. However, other world-renowned titles such as Perfect Pairs, High Card Flush, and Caribbean Stud Poker have been added as well.
The terms of the purchase agreement show a $12.425 million payment to purchase all interests. The deal even calls for a cash payment, which will be somewhere between $6.425 million and $10.425 million.
Any remaining sum due will be paid out in shares of Galaxy, and the value of the stock price has been set at $1.91 per share. Galaxy maintains the expectation that the acquisition of PGP will only increase earnings per share at the time of its closing.
This addition of PGP gives Galaxy grow considerably in the online casino market. Their goal is to build on many of the existing close relationships with casino groups and be everyone’s first choice as we see legal online casino gambling spread across the United States.
Exposure to new markets and opportunities are the endgame. Not only does Galaxy want relationships with online casinos, but they also want a relationship with online casinos users. Both of which won’t be hard to build.
Todd Cravens is President and CEO of Galaxy Gaming. He commented on the deal with the following thoughts:
“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.”