Golden Matrix Group Inc. (GMGI) and MeridianBet Group have announced revisions to their definitive agreement, which was originally concluded earlier this year. The new agreement extends the transaction’s completion date and makes changes to key clauses.
The initial arrangement called for Las Vegas-based GMGI to pay around $300 million for the Malta-based online sports betting and gaming firm, which operates in 15 nations across Europe, Africa, and South America. The agreement called for a $70 million cash payment and the issue of 65.3 million common shares to MeridianBet owners at a predetermined price of $3.50 per share.
The cash payable upon transaction conclusion has been reduced from $50 million to $30 million in the modified agreement, but the non-contingent cash consideration of $20 million remains. Furthermore, the stock component of the transaction has been increased to 82,141,857 common shares payable at closure. Anthony Goodman, CEO of GMGI, stated that the revised cash and stock transaction is now worth approximately $331 million, with the equity consideration priced at $3 per share. This is a 38% premium over GMGI’s 30-day volume-weighted average price.
MeridianBet’s excellent year-to-date revenues, according to Goodman, accounted for the enhanced total price consideration. The acquisition is now expected to produce roughly $31 million in Adjusted EBITDA and $139 million in revenues for the fiscal year ending October 31, 2023, according to the company’s financial statements and projections.
Positive Prospects for the Acquisition Goodman voiced confidence in the acquisition’s worth, highlighting the enormous financial and operational benefits it will bring to GMGI. The company’s management believes the transaction will provide long-term value for all stakeholders.
Transaction Closure and Shareholder Approval GMGI is actively exploring financing options to meet the transaction’s requirements and plans to file the required proxy statement for shareholder approval in the third quarter of 2023. MeridianBet’s acquisition is expected to close in the third or fourth quarter, depending on different closing circumstances.
Market Expansion and Projections MeridianBet Group’s purchase will provide GMGI with access to developing and quickly increasing regulated B2C markets in Eastern Europe. According to Statista, this market is predicted to reach $895 million in 2023 and $1.23 billion by 2027.
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