SBC News Voice of the Sports Betting Industry
Golden Matrix Group Inc (GMGI) has signed an amended and restated purchase agreement, to settle terms of its acquisition of MeridianBet.
The deal reduces the purchase payment made by GMGI to MerdianBet for the acquisition of the group,a Malta-based B2C betting and gaming operator active in Europe, Africa and Latin America.
Specifically, the cash required to be paid by GMGI to MeridianBet upon closure of the transaction has been cut from $50m to $30m, with $20m in non-contingent cash consideration post closing, as the Las Vegas-based company works to secure financing required for completion of the takeover.
The firm originally secured terms to acquire MerdiainBet for $300m back in January 2023. Golden Matrix’s main motivation was detailed as a desire to enter new markets and create a portfolio of profitable and cash-positive brands.
Anthony Brian Goodman, GMGI CEO explained: “In consideration of the reduced cash amount required to be paid at the closing of the transaction, the revised cash and stock transaction now has a value of approximately $331m, with the stock consideration priced at $3 per share – currently an approximate 38% premium to GMGI’s 30-day VWAP closing price (with 82,141,857 shares of common stock due at the initial closing).
“MeridianBet has increased its year-to-date revenues considerably against last year’s revenues and the proforma performance of the combined company following the acquisition is now projected to be approximately $31m in Adjusted EBITDA for the October 31, 2023 year, and approximately $139m in revenues, based on MeridianBet’s year to date financial statements and financial projections.”
Having secured a discounted deal on its planned acquisition of MeridianBet, Golden Matrix now intends to file the required proxy statements for shareholder approval by the third quarter of the year.
The company expects the closure of the acquisition in the third or fourth quarter of 2023, subject to ‘various conditions’, most notably the aforementioned tasks of raising the required funds and securing approval from its shareholders.
As a Las Vegas-headquartered company, Golden Matrix’s takeover of MeridianBet goes somewhat against the grain regarding transatlantic betting and gaming business, which has largely seen European firms seek to enter the North American market.
By acquiring MeridianBet, the company will integrate a firm which, as stated above, is active in the markets of Europe and Africa – although also rapidly developing Latin America – and has secured brand visibility in Southeast European betting sectors via sports sponsorships in Montenegro and Serbia.
Goodman concluded: “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.”
