In a pivotal move for gaming technology company Golden Matrix, shareholders have cast their decisive votes in favor of the company’s proposed acquisition of MeridianBet, a significant milestone that could potentially expand Golden Matrix’s influence within the gaming industry. During a specially convened meeting this week, shareholders representing 73.5% of voting power assembled to deliberate on the proposed acquisition, ultimately providing their endorsement.
The vote signifies a major step forward for Golden Matrix as it inches closer to completing the acquisition. It’s important to note that despite this progress, the transaction is contingent upon meeting other closing conditions, which includes the imperative task of securing adequate funding to finance the purchase.
Golden Matrix’s leadership team expressed their satisfaction with the outcome of the vote. Chairman and CEO Brian Goodman underlined the enthusiasm for the acquisition, suggesting that the strong show of support from the shareholders reflects their belief in the acquisition’s potential to bolster the company’s growth, expand its international presence, and enhance its overall business operations.
The path to acquiring MeridianBet began in earnest in January of last year when Golden Matrix entered into the agreement for a deal valued at approximately $300 million. Initially, the company anticipated that the acquisition would be finalized in the first half of 2023. Nevertheless, several modifications to the original plan resulted in pushing the anticipated closing date to the fourth quarter of 2023.
Subsequent adjustments were made in October, further deferring the closing to the first quarter of 2024. Although as of January, this timeframe was maintained, recent developments suggest the possibility of finalizing the deal in the second quarter of this year.
Confirmation of the shareholders’ approval coincides with the release of Golden Matrix’s impressive financial results for the first quarter. In that period, the company achieved a record-breaking quarterly revenue of $11.8 million, a notable accomplishment that was complemented by the ability to also post a net profit.
Disaggregating the revenue sources, the business-to-consumer (B2C) operations, which include the RKings and the Mexico-based Mexplay brands, contributed $7.2 million to the total revenue. As for the business-to-business (B2B) segment, revenue amounted to $4.6 million. In its statement, Golden Matrix disclosed that its B2B gaming platforms support 808 unique casino operations, catering to a combined user base of 8.3 million across these partners.
After addressing tax obligations of $262,180 and taking into account a positive foreign currency translation adjustment of $197,891, the company reported a net profit of $272,396, a significant turnaround compared to a loss of $291,262 in the first quarter of the previous year.
Golden Matrix also reported a sizeable increase in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter, surging by 33.8% to reach $1.2 million.
This potent combination of shareholder support and strong financial performance seems to place Golden Matrix on a robust trajectory as it continues to advance towards the acquisition of MeridianBet. Should the company fulfill the remaining closing conditions, the acquisition looks set to transform its business landscape, creating new opportunities for growth and asserting its presence on a global scale in the competitive gaming technology arena.
