Golden Matrix (GMGI) expects to close its acquisition of MeridianBet Group within the next six months after amending its purchase agreement with the Southeast European betting group for the second time.
The Las Vegas-based gaming and ecommerce developer and operator projects that the takeover of B2C betting group MeridianBet will be concluded in either Q3 2023 or the first quarter of next year.
Explaining amendments to the purchase agreement in a statement, Golden Matrix revealed that a modification to the financial closing terms of the deal allows for use of to $20m of cash-on-hand of MeridianBet Group to pay a portion of the $30m cash payable by Golden Matrix at the closing of the transaction.
The group also detailed that it intends to file a required proxy statement requesting shareholder approval for the issuance of the shares of common stock issuable in connection with the transaction, and other matters, with the SEC for shareholder approval in the near future.
Anthony Brian Goodman, GMGI CEO remarked: “These recent filings reinforce the importance of this strategic acquisition, and demonstrate both companies’ willingness and ability to close the transaction.
“The amendment allowing GMGI and the sellers to use up to $20m of the MeridianBet Group’s cash-on-hand at closing (subject to the sole discretion of the sellers), not only provides the company with potential greater flexibility on financing, but we believe also demonstrates the sellers’ confidence in the value of creating a combined entity capable of being greater than the sum of its parts.”
The MeridianBet acquisition is currently valued at around $331m, having been raised from $300m in a prior amendment to the agreement inked out in July. It is subject to customary closing conditions such as GMGI shareholder and Nasdaq approval, among others.
Should the transaction be fully approved by both Golden Matrix’ shareholders and the stock exchange, the takeover would significantly extend the supplier’s reach in the international B2C betting space, with MeridianBet active in Europe, Africa and Latin America.
In its latest update, GMGI also revealed that its revenue has risen “considerably” against previous year earnings. Expectations for the combined company’s revenue and earnings performances, following completion, have subsequently been ramped up.
Despite this, last month Goodman partially aligned costs associated with the delayed acquisition as resulting in the group slipping to a net loss of $965,628 through its third fiscal quarter ending July 31, 2023.
Following this latest update, he concluded: “Both MeridianBet Group CEO Zoran Milosevic and I are confident that the completion of this acquisition will drive long-term value for all our stakeholders as we seek to benefit from economies of scale and both companies’ historical revenue and profit growth.
“We are also working closely with our bankers in an effort to raise the most beneficial financing available for the transaction.”