Golden Matrix Group to acquire MeridianBet for $300M

iGaming and eCommerce developer and operator Golden Matrix Group announced Thursday it has entered into a definitive acquisition agreement with Southeast Europe B2C sports betting and gaming business MeridianBet Group and its related companies in a cash and stock transaction valued at approximately $300 million. 

When completed, the acquisition will provide Golden Matrix access to new and fast-growing regulated B2C markets that have experienced double-digit compound annual growth rates since 2020, says the buyer, supported by a network of over 1,100 MeridianBet professionals. The acquisition is expected to close in the first half of 2023. 

The combined pro forma revenues of both companies are expected to be greater than $100 million in FY2022, with an EBITDA estimated to be greater than $22 million for the pro forma year ended October 31, 2022, making the combination "financially appealing and earnings-accretive." Both companies plan to continue operating under their respective brands. 

$GMGI has entered into a definitive acquisition agreement to acquire MeridianBet Group and its related companies in a cash and stock transaction valued at approximately $300 million.#BreakingNews #investors #NASDAQhttps://t.co/FwGXJuMTW3

— Golden Matrix Group (@GMGI_Official) January 12, 2023

Transaction highlights include the creation of a combined group of "profitable and cash-positive companies," with enhanced buying power, as well as access to new markets at a global scale. 

It also carries an increased competitive edge supporting over 600 third-party casino brands on combined proprietary platforms and over 3.5 million registered retail customers in the B2C-facing business. 

Golden Matrix also notes MeridianBet's "strong" B2C presence in European, Latin America and African sports betting markets and over 38% year-on-year revenue growth in FY22. Combined with Golden Matrix’s B2B gaming platforms, the group expects "complementary aspects of the business and a significant increase in market share for both companies."

Brian Goodman

Brian Goodman, CEO of Golden Matrix, commented: "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. MeridianBet Group appealed to us with its proven business model that emphasizes organic growth, resilience to external economic factors, and exceptional products and technology."

"We are pleased to be on the path to completing this acquisition and look forward to strengthening and growing our position in the global online betting and gaming industry, expanding into new regulated markets, and maintaining our ongoing drive to scale the business as a whole at a rapid growth rate," he added.

According to Goodman, MeridianBet Group’s regional market strength, brand awareness and proprietary technology solutions across the enlarged group are expected to further accelerate growth and expansion into new territories.

Zoran Milosevic

Zoran Milosevic, Chief Executive Officer of MeridianBet Group, stated: “Today marks a major milestone for MeridianBet Group and its employees. 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.” 

The purchase price payable to MeridianBet Group shareholders will be of approximately 65.3 million common shares of GMGI, based on an agreed price of $3.50 per share, and $70 million in cash. 

“From the perspective of MeridianBet Group, the strategic rationale behind the deal and becoming part of a Nasdaq-listed company is to be more competitive and successful in Brazil, the United States and other large markets – where market entry for private companies is more challenging,” Milosevic further stated. 

No change in the company’s name is planned in connection with the acquisition, and the board structure is expected to remain the same, with the sole exception being William Scott joining as Chairman of the Board.