Golden Matrix agrees to acquire MeridianBet Group for $300m

The leading provider of solutions for gaming platforms, developer of online content and esports technology, Golden Matrix Group Inc (GMGI), announced Thursday a major acquisition. The company revealed it entered into a definitive agreement to acquire the leading business-to-consumer (B2C) sports betting and gaming company MeridianBet Group.

The acquisition with a price tag of approximately $300 million will see Golden Matrix acquire MeridianBet Group and its related companies. A combination of stock transaction and cash payment is expected to settle the acquisition.

A statement released by Golden Matrix reveals that the "purchase price payable to MeridianBet Group shareholders will be satisfied by the issuance to MeridianBet stockholders of approximately 65.3 million common shares of GMGI, based on an agreed price of $3.50 per share, and $70 million in cash."

Currently, the acquisition has secured the approval of the Board of Directors of the two companies. Upon closing the deal, MeridianBet Group and its related companies will become Golden Matrix's wholly-owned subsidiaries. Once the acquisition is completed, the combined companies are expected to generate pro-forma revenues surpassing $100 million.

Still, it is important to mention that the acquisition is subject to different closing conditions. Golden Matrix needs to complete due diligence check, secure the funding for the transaction, and receive the relevant regulatory and shareholder approvals. The deal itself is expected to be closed in H1 of 2023.

Ultimately, the combination is expected to create a group of profitable companies that have "enhanced buying power" and the capability to capture opportunities within emerging markets. More than 600 third-party casino brands will be supported by the companies with more than 3.5 million customers.

As a company with a presence in key European, Latin American and African sports betting markets, MeridianBet will be able to grow further on a global scale. At the same time, the established presence of the company is expected to create new growth opportunities for Golden Matrix.

Zoran Milosevic, MeridianBet Group's Chief Executive Officer, acknowledged that the acquisition marks a milestone moment for the company. "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," explained the company's CEO.

He thanked MeridianBet Group's team, as well as the team at Golden Matrix that worked hard for the agreement. Finally, Milosevic said: "We are excited about the many opportunities we can pursue together in the years ahead, and we look forward to updating shareholders and employees on our progress and working towards closing the acquisition and continuing as a combined group."

Brian Goodman, Golden Matrix's CEO, added that the company is excited to enter into an agreement to acquire MeridianBet Group. "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," he added. Last but not least, Goodman said that MeridianBet's presence in multiple markets is expected to accelerate Golden Matrix's growth and help the company enter new markets.

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