iGaming platforms developer and operator Golden Matrix Group (GMGI) has made further amendments to its acquisition agreement concerning the purchase of B2C online gaming business MeridianBet Group. These amendments encompass an extension of the closing date and modifications to the financial terms of closing.
Under the revised terms, the acquisition is now projected to conclude either in the fourth quarter of 2023 or the first quarter of 2024, deviating from the initial agreement that specified the third or fourth quarter of 2023.
The change in the financial terms now permits using up to $20 million from MeridianBet Group’s available cash to cover a part of the $30 million cash payment by Golden Matrix upon the transaction’s closure, subject to approval by the sellers.
On September 29, Golden Matrix filed a Current Report on Form 8-K, disclosing excerpts from certain presentations used by GMGI in connection with the funding sought by Golden Matrix to close the transaction.
“These recent filings reinforce the importance of this strategic acquisition, and demonstrate both companies’ willingness and ability to close the transaction,” GMGI CEO Anthony Brian Goodman said.
“The amendment allowing GMGI and the sellers to use up to $20 million of the MeridianBet Group’s cash-on-hand at closing (subject to the sole discretion of the sellers), not only provides the company with potential greater flexibility on financing, but we believe also demonstrates the sellers’ confidence in the value of creating a combined entity capable of being greater than the sum of its parts.”
$GMGI – the combined company, following the #acquisition, is now projected to be approximately $132 million in #revenues and $27 million in Adjusted #EBITDA, for the October 31, 2023 fiscal year.https://t.co/AYVpeqHjKb
— Golden Matrix Group (@GMGI_Official) October 4, 2023
Goodman noted that MeridianBet Group 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 $132 million in revenues and $27 million in Adjusted EBITDA for the October 31, 2023 fiscal year.
“Both MeridianBet Group CEO, Zoran Milosevic, and I are confident that the completion of this acquisition will drive long-term value for all our stakeholders as we seek to benefit from economies of scale and both companies’ historical revenue and profit growth. We are also working closely with our bankers in an effort to raise the most beneficial financing available for the transaction,” he added.
In July, the companies entered into an amended and restated purchase agreement under which cash to be paid by GMGI at the closing of the deal had been reduced from $50 million to $30 million, with a further $20 million in non-contingent cash consideration due post-closing.
At the completion of the deal, 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/noticias/2023/10/06/69089-golden-matrix-extends-closing-date-alters-financial-terms-in-meridianbet-acquisition
