Casino table games developer and distributor Galaxy Gaming has agreed a deal to purchase Progressive Games Partners (PGP) for $12.4m (£9.6m/€11.4m).
Under the agreement, Galaxy will acquire 100% of the equity interests in PGP, which owns the exclusive global online rights to a range of proprietary casino table games.
The purchase agreement states that Galaxy will pay between $6.4m and $10.4m in cash to acquire PGP, with the remaining sum to be paid in newly issued shares of Galaxy common stock valued at $1.91 per share.
Galaxy said the acquisition will allow it to exploit more opportunities in the US online casino market by building on existing relationships with casino groups expanding their sphere of operations online, as well as by gaining exposure to new markets and opportunities.
The two parties have been working together for a number of years, with PGP having the exclusive online distribution rights for Galaxy’s gaming content.
“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,” Galaxy’s chief executive and president Todd Cravens said.
“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 added: “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.”