GMGI agreed to buy MeridianBet in January of 2023, in a deal worth approximately $300.0m (£235.1m/€273.8m). GMGI had been hoping to close the acquisition in H1 of 2023.
However, GMGI in July made several amendments to the deal, pushing the closing date back to Q4 of 2023. An up-front cash payment due by GMGI was also reduced.
In October, it was then revealed that ongoing talks between the two parties led to further amendments. The main change was an extension to the proposed closing date, pushing this back as far as Q1 2024.
At the time, GMGI was hopeful that the deal could still complete before the end of 2023. While this did not happen, MeridianBet CEO Zoran Milosevic has now said it is likely to complete before the end of March.
“We look forward to the completion of the acquisition by Golden Matrix, now expected in the first quarter of 2024, and how the combined company will offer state-of-the-art B2B and B2C gaming platforms in multiple jurisdictions worldwide,” Milosevic said.
“Completion of this acquisition will drive long-term value for all our stakeholders. We will benefit from economies of scale and from both companies’ historical revenue and profit growth.”
Revenue up 25% at MeridianBet in 2023
Alongside the acquisition update, MeridianBet also revealed data about its performance in 2023.
For the 2023 calendar year, MeridianBet said revenue was up approximately 25%. This was up from 24% in the previous year. Meanwhile, EBITDA was 10% higher year-on-year and net profit 6%.
All this, MeridianBet said, was driven by “significant” new product offerings and continued expansion into regulated jurisdictions.
Key highlights in 2023 included the launch of new proprietary gaming platform Atlas in 40% of all markets. MeridianBet also rolled out seven new slot games during the year.
Elsewhere, MeridianBet launched partnerships with 36 new media outlets and integrations with six new online casino platforms. It also said it had taken steps to streamline registration and deposits to help improve user experience.
Brazil and South Africa among target markets for MeridianBet
As for geographic growth, MeridianBet moved into Kenya in 2023. This means it is now licensed and operating in 15 jurisdictions in Europe, Africa and South America. MeridianBet added that it expects to add a licence in South Africa before the end of Q1.
In addition, MeridianBet noted the expected impact of approved regulations in the Brazilian market. Brazil’s president, Luiz Inacio Lula da Silva, recently made regulation in the country official, ratifying a new regulatory framework for sports betting and igaming.
MeridianBet said that it has already established casino and sportsbook operations in Brazil. It added that it has made an expression of interest, in what is the first step in securing a Brazilian gaming licence.
“We are extremely pleased with our strong year-on-year operating results and continued expansion into new regulated markets,” Milosevic said. “We are especially excited about the recent legislation for online casino and sportsbook in Brazil one of the world’s largest gambling markets.”
Original article: https://igamingbusiness.com/strategy/ma/gmgi-acquisition-of-meridianbet-set-to-complete-in-q1/
