Golden Matrix snaps up MeridianBet in $300m deal
US supplier expands into B2C operations with MeridianBet eyeing US and Brazil expansion following merger
Golden Matrix has agreed a $300m stock and cash acquisition for MeridianBet Group as the supplier looks to branch out into B2C operations.
The deal will see the US B2B firm snap up the MeridianBet, which operates in multiple markets across Europe, Africa and Latam.
The purchase agreement will be a $70m cash payment, with the remainder of the value being made up of the issuance of approximately 65.3 million common shares of Golden Matrix at the agreed price of $3.50 a share.
Following the completion of the deal, MeridianBet will become a wholly owned subsidiary of Golden Matrix.
The supplier confirmed the company’s name will not change following the merger, and the board shall remain the same bar the addition of current MeridianBet advisor William Scott as chair.
Golden Matrix noted the combined pro forma revenue of both companies is expected to be greater than $100m in 2022, with EBITDA estimated to be larger than $22m for the pro forma year ending 31 October 2022.
MeridianBet posted a 38% year-on-year (YoY) rise in revenue between 2021 and 2022 and boasts more than 6.8 million registered users.
The acquisition is expected to close in the first half of 2023.
Brian Goodman, Golden Matrix CEO, said: “We are thrilled to announce our entry into a purchase agreement with the shareholders of MeridianBet Group. 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 emphasises organic growth, resilience to external economic factors, and exceptional products and technology,” he added.
Zoran Milosevic, MeridianBet CEO, noted the deal would allow for expansion into new markets including the US and Brazil.
Milosevic noted: “We are excited about the many opportunities we can pursue together in the years ahead, and we look forward to updating shareholders and employees on our progress and working towards closing the acquisition and continuing as a combined group.”