Login/Register
Octoplay
Octoplay
Jumio
BetConstruct

Golden Matrix agrees deal to acquire MeridianBet for $300m

13th January 2023 12:42 pm GMT

New York-listed Golden Matrix Group (GMGI) has entered into a definitive agreement to acquire Malta-based betting and gaming operator MeridianBet for approximately $300m.

The deal comprises $70m in cash and 65.3m common shares in Golden Matrix, based on an agreed price of $3.50 per share.

Golden Matrix said that it has been seeking opportunities to grow and expand in a strategic and sustainable way, with the acquisition of MeridianBet presenting a unique opportunity to gain access to new markets and resources.

MeridianBet has over 6.8m registered customers across its B2C operations in Europe, Latin America and Africa, with revenue expected to climb 38 per cent in 2022.

“We are thrilled to announce our entry into a purchase agreement with the shareholders of MeridianBet Group,” said Golden Matrix CEO Brian Goodman. “We believe that this acquisition will provide us entry into a well-established and highly scalable B2C vertical in new markets outside of our core markets. MeridianBet Group appealed to us with its proven business model that emphasizes organic growth, resilience to external economic factors, and exceptional products and technology.

“We are pleased to be on the path to completing this acquisition and look forward to strengthening and growing our position in the global online betting and gaming industry, expanding into new regulated markets, and maintaining our ongoing drive to scale the business as a whole at a rapid growth rate. MeridianBet Group’s regional market strength, brand awareness and proprietary technology solutions across the enlarged group are also expected to further accelerate our growth and expansion into new territories.”

The acquisition is expected to close in the first half of 2023, subject to customary conditions to closing, including GMGI raising required funding, completion of due diligence, GMGI shareholder approval, and regulatory approvals.

Following completion, the combined pro forma revenue of both companies is expected to be more than $100m for the year ended 31 October 2022, with EBITDA estimated to be more than $22m.

Both companies plan to continue operating under their respective brands.

“Today marks a major milestone for MeridianBet Group and its employees,” said MeridianBet CEO Zoran Milosevic. “As a public company traded on Nasdaq, in synergy with Golden Matrix, we expect to set an industry standard when it comes to worldwide gaming platforms and to be in an even stronger position to deliver on our aggressive growth strategy and expand into new markets, including Brazil and the US.

“From the perspective of MeridianBet Group, the strategic rationale behind the deal and becoming part of a Nasdaq-listed company is to be more competitive and successful in Brazil, the United States and other large markets – where market entry for private companies is more challenging. We are confident the best days of sports betting and online casinos are yet to come, with gaming regulation rolling out globally, creating opportunities for us to expand into these emerging markets.”

As part of the transaction, William Scott will join the enlarged company as chairman of the board. Scott is currently an advisor to MeridianBet.

Golden Matrix also owns prize competition business RKings, which operates in the United Kingdom and Ireland, and recently launched a licensed online casino in Mexico under the Mexplay brand.

Shares in Golden Matrix Group Inc (NASDAQ:GMGI) closed 7.09 per cent lower at $3.80 per share in New York Thursday, and rose by 2.37 per cent to $3.89 in after hours trading.

Related Videos
Amusnet
BRAGG Gaming
Astropay
Greentube
Yggdrasil
Uplatform
Jumio
BetConstruct