Golden Matrix Group to acquire MeridianBet in amended purchase agreement
Golden Matrix Group, a prominent developer, licensor, and global operator of online gaming and eCommerce platforms, has announced a significant development in its expansion plans.
he company has entered into an Amended and Restated Purchase Agreement with MeridianBet Group, one of Southeast Europe’s leading business-to-consumer (B2C) sports betting and gaming groups, with headquarters in Malta and operations across multiple markets in Europe, Africa, and Latin America.
Several modifications
The revised agreement brings several modifications, most notably reducing the cash required by GMGI for the transaction from $50 million to $30 million, with $20 million in non-contingent cash consideration due post-closing. This amended agreement is aimed at providing more favourable terms for both parties involved.
The acquisition, which was previously set to close sooner, is now expected to be completed in the third or fourth quarter of 2023. However, the closure is subject to various conditions, including GMGI securing the necessary financing, obtaining shareholder approval, and fulfilling other regulatory requirements.
Anthony Brian Goodman, the Chief Executive Officer of GMGI, expressed his enthusiasm for the amended agreement, highlighting that the deal’s value now stands at approximately $331 million. The revised cash and stock transaction will offer an attractive price of $3 per share, representing an approximate 38% premium to GMGI’s 30-day VWAP closing price. At the initial closing, GMGI will issue 82,141,857 shares of common stock.
“MeridianBet’s impressive performance thus far in 2023 gives us even greater confidence in the value of this acquisition, which is expected to bring significant benefits to GMGI from both a financial and operational standpoint, and our management team is confident it will drive long-term value for all our stakeholders.” said Goodman
The impressive performance of MeridianBet
MeridianBet Group’s impressive performance in 2023 has bolstered confidence in the acquisition’s potential benefits. The combined company’s projected Adjusted EBITDA for the year ending October 31, 2023, is approximately $31 million, with revenues expected to reach approximately $139 million based on MeridianBet’s year-to-date financial statements and projections.
This strategic move comes as GMGI aims to capitalize on the fast-growing online gambling market in Eastern Europe. According to a 2023 report by Statista, the market is expected to reach US $894.60 million in 2023 and is projected to soar to US $1.231 billion by 2027. The acquisition of MeridianBet will grant GMGI access to new and thriving regulated B2C markets in the region, aligning with the company’s growth strategy.
As GMGI proceeds with its plans to seek shareholder approval for the acquisition in the third quarter of 2023, the management team remains confident that the deal will drive long-term value for all stakeholders involved. The acquisition is expected to open up exciting opportunities for GMGI, positioning the company for sustained growth in the competitive global gaming market.
