GMGI has reached an amended agreement to acquire MeridianBet in a deal valued at approximately $331.0m. The original deal was expected to close in the first half of 2023, but it is now anticipated to close in the third or fourth quarter of 2023. Under the new agreement, GMGI will pay $30.0m in cash at closing, with an additional $20.0m in non-contingent cash consideration post-closing. The stock consideration will be priced at $3 per share, which is a 38% premium to GMGI’s 30-day VWAP closing price. Shareholder approval for the acquisition will be sought in Q3.
MeridianBet has shown strong performance in 2023, with increased year-to-date revenues compared to last year. Based on the performance to 31 October 2023, the combined business post-acquisition is projected to generate $139.0m in revenue and $31.0m in adjusted EBITDA.
If the deal proceeds as planned, the MeridianBet group of companies will become wholly owned subsidiaries of GMGI. This acquisition will provide GMGI with access to regulated B2C markets in Eastern Europe and create a combined group of profitable companies. GMGI expects to achieve organic growth and pursue further acquisitions, leveraging synergies within core markets using the MeridianBet brand and other GMGI B2C brands.
GMGI’s wider growth plans include expanding its global operations, particularly in North America, through its M&A activity. The company aims to participate in online gambling markets in the US and Canada.
