Online gaming platform developer Golden Matrix Group (GMGI) and B2C iGaming operator MeridianBet Group have amended the agreement under which GMGI will purchase MeridianBet.
The two companies announced a modified agreement that extends the required closing date and modifies additional terms of the previously announced agreement. Under the amended 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 percent premium to GMGI’s 30-day VWAP closing price. A total of 82,141,857 shares of common stock will be due at the initial closing.
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.
“MeridianBet has increased its year-to-date revenues considerably against last year’s revenues,” said Anthony Brian Goodman, chief executive officer of GMGI, “and the pro-forma 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.”
Should the deal proceed as expected, the MeridianBet group of companies will become wholly owned subsidiaries of GMGI. 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.
