iGaming platforms developer and operator Golden Matrix Group (GMGI) and B2C online gaming business MeridianBet Group announced Friday that they have entered into an amended and restated purchase agreement. The new deal extends the required closing date and modifies additional terms of the previously announced agreement, under which GMGI has agreed to acquire MeridianBet Group and its related companies.
Under the restated purchase agreement, cash to be paid by GMGI at the closing of the deal has been reduced from $50 million to $30 million, with a further $20 million in non-contingent cash consideration due post-closing.
Stock consideration will be priced at $3 per share, currently an approximate 38% premium to GMGI’s 30-day VWAP closing price. Some 82,141,857 shares of common stock will be due at the initial closing.
$GMGI – the combined company following the acquisition is now projected to be approximately $31 million in Adjusted EBITDA for the October 31, 2023 year, and approximately $139 million in revenues, based on MeridianBet’s year to date https://t.co/nBD0aP9de7
— Golden Matrix Group (@GMGI_Official) June 30, 2023
According to the announcement, GMGI is currently working to obtain the financing required to complete the transaction and plans to file the required proxy statement to seek shareholder approval for the acquisition in Q3, 2023. The amended agreement means the deal now has a value of approximately $331 million.
The acquisition is expected to close in the third or fourth quarter of 2023, subject to various conditions to closing, including GMGI raising required funding, GMGI shareholder approval, and other items.
Anthony Brian Goodman, CEO of GMGI
Anthony Brian Goodman, Chief Executive Officer of GMGI, stated: “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 $31 million in Adjusted EBITDA for the October 31, 2023 year, and approximately $139 million in revenues, based on MeridianBet’s year to date financial statements and financial projections.”
“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,” he added.
Should the deal proceed as expected, the MeridianBet group of companies will become wholly owned subsidiaries of GMGI. The deal would provide GMGI with access to regulated B2C markets in Eastern Europe, which online gambling market, according to a 2023 report by Statista, is expected to reach $894.60 million in 2023, and US $1.231 billion by 2027.
Original article: https://www.yogonet.com/international/news/2023/07/03/67748-golden-matrix-group-amends-meridianbet-purchase-agreement-now-valued-at-331m
