Golden Matrix Group Inc (GMGI) has upgraded its Acquisition Agreement to settle the terms of its purchase of MeridianBet, a B2C betting and gaming operator based in Malta and operating in Europe, Africa and Latin America.
Under the revised agreement, GMGI reduced their offer to MeridianBet from $50 million to $30 million. Upon closing, MeridianBet will receive an unconditional cash refund of $20 million. These changes to the agreement come about as GMGI headquarters in Las Vegas is actively working to secure the necessary funding to successfully complete a transaction with MeridianBet.
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 revenue, based on MeridianBet’s year to date financial statements and financial projections.”
Golden Matrix, having entered into a deal to acquire MeridianBet at a discount, plans to submit relevant authorized statements for shareholder approval by the third quarter of this year.
The company expects the acquisition to close in the third or fourth quarter of 2023, subject to “various conditions” being met, including raising the necessary funds and obtaining shareholder approval.
MeridianBet’s takeover by Golden Matrix, a Las Vegas-headquartered company, does represent a bit of a departure from trends in the transatlantic betting and gaming industry, where European companies are looking to actively infiltrate the North American market.
By acquiring MeridianBet, Golden Matrix is integrating a company that, as noted earlier, is active in the European and African markets and is expanding rapidly in Latin America. In addition, MeridianBet has established its betting brand in South East Europe with 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.”
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