Evolution has terminated its merger agreement with Galaxy Gaming, ending the planned acquisition of the operator.
The live casino technology provider will now incur a break-up fee of approximately SEK 50 million ($4.6 million) as a result of the dissolution.
The decision marks a sharp reversal for Evolution, which had previously signaled intent to expand its footprint through the deal.
The termination fee represents a direct hit to near-term profitability, though it is modest relative to the company's market capitalization.
Investors will likely focus on whether the exit preserves capital for alternative uses or signals broader caution in the iGaming M&A landscape.
This development follows a pattern of deal cancellations in the broader market, including recent reports of Australian supermarket giant Coles terminating negotiations to acquire Greencross.