Golden Matrix Group, Inc., one of the leading companies in the iGaming industry, released some updates related to the recent acquisition of the leading Southeast European B2C company, MeridianBet Group.
The First Amendment:
On September 27, the companies signed a First Amendment to Amended and Restated Purchase Agreement and decided upon the acquisition. The date of closing the agreement is extended, and the financial terms will be modified as well.
After changing the financial terms, Golden Matrix will be able to use up to $20 million of cash-on-hand to pay part of the total amount of $30 million. After the July amendments the initial amount of $50 million was reduced to $30 million.
Golden Matrix also filed a Current Report on Form 8-K, which disclosed some of the important parts of the presentations that the company used to find the funds for the acquisition.
Anthony Brian Goodman, the CEO of Golden Matrix, commented on the recent course of the events: “These recent filings reinforce the importance of this strategic acquisition and demonstrate both companies’ willingness and ability to close the transaction. 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.”
According to the press release, the MeridianBet Group’s revenue increased compared to the previous year, which changed the expectations for the future: together, the companies are expected to earn about $132 million in revenue, as well as $27 million in Adjusted EBITDA for the 2023 fiscal year from October 31.
Goodman added: “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.”
The next step for Golden Matrix is filling out the proxy statement to ask for the approval of its shareholders and Nasdaq, after which the process will go as planned.
There’s still a lot of work to be done, but if everything goes as planned, the acquisition will be over in the fourth quarter of 2023 or the first quarter of the next year.