Evolution CEO Martin Carlesund has cast doubt on the company’s proposed acquisition of Galaxy Gaming, revealing the set closing period for the deal expires on 17 July, meaning both parties will be able to terminate the agreement.
In July 2024, Evolution agreed an $85m deal to purchase the Las Vegas-based gaming supplier, with the acquisition expected to be completed midway through 2025.
But with agreement still yet to be reached, Carlesund admitted the deal may be put on the back burner.
Speaking as the company released Q2 financials on Friday, 17 July, he said: “Two years have passed, and Evolution has spent significant time, effort and resources handling the rather large amount of administration required to close this acquisition.
“Galaxy is a great company; however, due to its size, the transaction is not significant for Evolution.
“The outcome has no material impact on our existing business, our US operations or our long-term ambitions.”
When asked on the earnings call to expand on what happens next with the proposed deal, Carlesund said management would “come back in due time on the way forward”.
Financially, the CEO said the Stockholm-listed supplier is “moving forward”, despite revenue net revenue declining 1.2% year on year (YoY) in Q2.
Net revenue amounted to €517.8m (£441m), down from €524.3m the same quarter a year prior, while adjusted EBITDA slid 1.2% YoY to €341m. Adjusted EBITDA margin was 65.9%.
Evolution said profit for the period increased YoY from €248.3m to €251.4m.
Revenue from RNG games totalled €80.5m, up from €70.6m in Q2 2025, while live casino revenue fell to €437.3m from €453.7m.
Breaking down revenue by region, Europe declined 10.2% YoY to €344.7m.
Despite this, Carlesund highlighted that the region’s quarter-on-quarter (QoQ) revenue grew 3.5% after several quarters of decline.
He said: “We remain cautious about the low channelisation rates, but the quarter otherwise showed encouraging activity in several markets, with strong development in the game show category and continued demand for native-speaking tables.”
The supplier did report significant revenue increase in Asia, spiking from €1.3m in Q2 2025 to €17.7m a year later.
However, Evolution did suffer a QoQ decline of 3.7% YoY as Carlesund said it “remains volatile as earlier stated, and increased cybercrime activity could not be fully offset by otherwise relatively favourable development”.
There were also net revenue increases in North America, Latam and in the firm’s other regions – which mostly comprises African markets.
North America revenue for Q2 2026 increased from €71.1m to €78.8m, Latam reported revenue of €65.3m, up from €59.5m, while other regions revenue climbed from €8.4m to €11.4m.
During Q2, Evolution launched Monopoly Live in four US states and opened a second studio in Michigan.
The supplier also entered the newly regulated Canadian province of Alberta, which went live on 13 July.
Carlesund commented on the £4.75m settlement Evolution paid to the UK Gambling Commission earlier this week regarding its live casino content being found on several unlicensed sites, adding to an earlier statement issued by the supplier.
“We acted immediately when this was identified, and the review found no broader pattern of unlicensed access in the UK,” the CEO said.
“I am proud of how our team has handled the very lengthy review, with professionalism, discipline and a clear focus on doing what is right.”
Last month, the Superior Court of New Jersey denied Evolution’s request to add Playtech as an additional defendant in the ongoing libel lawsuit against Israeli intelligence firm Black Cube.
The case stems from the supplier accusing Playtech in October 2025 of commissioning an investigation by Black Cube that contained “highly inflammatory and knowingly false claims” which wiped billions off Evolution’s market cap.
The post Evolution hints it may ditch plan to acquire Galaxy Gaming first appeared on EGR Intel.
CEO Martin Carlesund reveals closing period for deal agreed in 2024 expires on Friday 17 July, with both parties able to terminate the proposed $85m transaction
The post Evolution hints it may ditch plan to acquire Galaxy Gaming first appeared on EGR Intel.