Listed on-line gaming developer and licenser Golden Matrix Group Inc. (NASDAQCM-GMGI) announced it will acquire Serbian Meridian companies/MeridianBet Group for close to USD 300 mln in early January, with a purchase agreement now in place.
The transaction comes to USD 298.5 mln, with the agreement signed Jan. 11, according to marketscreener.com.
Brian Goodman, CEO of Golden Matrix, noted the acquisition will provide instant access to the “scalable” potential of new markets.
“We are thrilled to announce our entry into a purchase agreement with the shareholders of MeridianBet Group,” Goodman said, as cited by a company press statement. “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,” he added. “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.”
Meridian Companies, owned by Aleksandar Milovanovic, Zoran Milosevic and Snezana Bozovic, will sell “100 percent of the outstanding capital stock of each of the Meridian Companies,” according to the site.
Commenting on the acquisition, MeridianBet Group Zoran Milosevic called the sale a “milestone” for his company.
“Today marks a major milestone for MeridianBet Group and its employees,” Milosevic said. “As a public company traded on Nasdaq, in synergy with Golden Matrix, 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.
“Our brands, which are well known among worldwide online betting and gaming communities, are stronger together; and I am looking forward to working closely with Brian Goodman as we conclude the acquisition,” he added.
The purchase agreement includes a 60-day due diligence period. Merdian currently employes some 1,100 people.
MeridianBet Group is active in Europe, Latin America and Africa.
Golden Matrix Group stated the goals of the transaction in a press release, which included access to new markets, the creation of a competitive edge supporting over 600 third party casino brands on combined proprietary platforms and more than 3.5 million registered retail customers in the B2C facing businesses.
“MeridianBet Group with a strong B2C presence in European, Latin America (LATAM), and African sports betting markets—and over 38% year-on-year revenue growth, Fiscal Year 2022 over 2021,” the company said. “[…] Combined with Golden Matrix’s B2B gaming platforms supporting over 6.8 million registered users is expected to result in complementary aspects of the business and a significant increase in market share for both companies.
Founded in 2001, the MeridianBet Group is a well-established online sports betting and gaming group, licensed and currently operating in more than 15 jurisdictions across Europe, Africa and South America. The MeridianBet Group’s successful business model utilizes proprietary technology and scalable systems, thus allowing it to operate in multiple countries and currencies and with an omni-channel approach to markets, including retail, desktop online and mobile.
Golden Matrix, based in Las Vegas NV, is an established B2B and B2C company across multiple international markets. The B2B division of Golden Matrix develops and licenses proprietary gaming platforms for its extensive list of clients and its B2C division operates a high-volume eCommerce site enabling end users to enter paid-for competitions on its proprietary platform in authorized markets.
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