Golden Matrix has completed its acquisition of MeridianBet Group for an estimated $300m.
In March, GMGI’s shareholders voted to approve the purchase.
MeridianBet explained that when GMGI announced its planned merger with Meridian in January 2023 it would provide it greater access to regulated B2C markets. It was anticipated that the deal would close during the first half 2023.
Howard & Howard acted for MeridianBet as the legal counsel. The Loev Law Firm acted on behalf of Golden Matrix as regards this transaction.
Stocks of the combined new company continue to be traded on Nasdaq under the GMGI symbol.
Brian Goodman CEO of GMGI said that GMGI was now in a good position to capitalize on its growth.
Goodman said, “This is an historic occasion that will lead to a fundamental and transformational change in our company, which has been growing rapidly.”
The consolidated business is expected to generate significant revenue and profit increases. We believe that we are well-positioned now to maintain our growth trajectory, and to provide incremental value for all of our stakeholders.
The acquisition has been in development for more than one year
Six months after confirming their agreement, GMGI & MeridianBet have agreed on a few amended terms. GMGI’s cash payment at closing was reduced from $50m to $30m under the new terms. Post-closing, GMGI agreed to pay an additional $20.0m of non-contingent consideration in cash.
The stock price was set at $3 per share. 82,141.857 common shares were due to be paid for the initial close. The deal was revalued at approximately $331.0m with these amended terms.
GMGI amended the agreement again in October 2023. This round’s most notable aspect was the extension of the original contract. The deal was expected to close by Q1 of 2024.
Another revision was made to the terms of financial closure in October. The other revision made in October related to the financial closing terms.
The deal was closed after GMGI announced record-breaking results for its first quarter ending 31 January 2024. The revenue was an all-time record of $11.8m. It increased by 9.3% on a year-over-year basis. The adjusted EBITDA reached $1.2m, a 33.8% increase, and the B2B revenue was $4.6m.
