Golden Matrix and MeridianBet have altered the terms of the acquisition agreement which has seen the transaction value increase to $331m due to the strong performance of the southeast European operator.
Back in January, Golden Matrix agreed to buy the operator for a deal valued at around $300m, but “impressive” figures posted by MeridianBet have seen the two parties amend the terms of the deal.
Despite the overall value of the deal increasing, the cash payment due at the closure of the deal – expected to be complete in Q3 or Q4 of this year – has decreased from $50m to $30m. Moreover, there is $20m in non-contingent cash due post-closure.
Golden Matrix has notified the market that it is “currently working to obtain the financing required to complete the transaction” and anticipates seeking shareholder approval for this move later in this quarter.
Anthony Brian Goodman, CEO of Golden Matrix, 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.
“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, and approximately $139m 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.”
Golden Matrix has typically been a B2B brand but has jumped at the chance to acquire MeridianBet, citing the significant opportunities in eastern Europe. The group noted that the region’s online gambling market is expected to grow to $1.23bn by 2027, marking its first move into B2C operations.
When the deal was first announced back in January, it was noted that with MeridianBet’s growth at 38% YoY in terms of revenues, and Golden Matrix’s 6.8 million registered users, will result in ‘complementary aspects of the business and a significant increase in market share for both companies’.