Casino table games developer Galaxy Gaming has agreed a US$12.43m deal to buy out Isle of Man-based Progressive Games Partners as it bids to make an impact in the US online market.
PGP owns the exclusive worldwide online rights to a suite of proprietary casino table games. Since signing its first licence agreement with Cryptologic in 2003, PGP has developed close working relationships with a number of online operators and platform providers.
An integral part of PGP’s success has been founded upon its exclusive online distribution rights for Galaxy’s gaming content, as well as other titles such as Perfect Pairs and Caribbean Stud Poker through its other licensors.
The aim of the deal is to enable Galaxy to more effectively exploit the opportunity provided by the rapidly expanding online casino market in the US, both by both building on existing relationships with casino groups that are expanding their sphere of operations online and also by gaining exposure to new markets and opportunities through its newly acquired online clientele.
Within the deal, between $6.425m and $10.425m will be paid in cash, with the remainder paid in newly issued shares valued at $1.91 per share. Completion of the deal is subject to certain conditions, including regulatory approvals.
Todd Cravens, Galaxy’s president and CEO, 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. 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.”
Chris Reynolds, PGP’s CEO, 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.
“I look forward to working with Todd and the Galaxy team to continue as one entity the success we have had separately.”
