Golden Matrix Group, Inc. (GMGI) has entered into a definitive agreement to acquire an 80% controlling interest in the Australian company Classics for a Cause Pty Ltd (CFAC) for approximately $8.4 million. CFAC is an online discount platform offering paid members access to discounts and promotional giveaways, including luxury cars and holiday prizes. The acquisition marks GMGI’s entry into the consumer loyalty and rewards industry, complementing its existing operations in gaming and sports betting. The purchase price is based on a multiple of roughly 5x CFAC’s profits before tax for the fiscal year ending June 30, 2024. Significant financial figures include CFAC’s over $10 million in revenue and $1.9 million operating profit before tax for the same period. The deal includes payment options of cash and GMGI stock, along with provisions for a holdback amount and an earnout contingent on post-closing performance. CEO Brian Goodman expressed optimism about the acquisition, highlighting synergies and revenue enhancement, while CFAC founder Thomas Bailey emphasized growth and expansion opportunities. The acquisition awaits customary closing conditions and is set to be effective from August 1, 2024.
Consumer Services – Loyalty and Rewards Programs, Gaming and Sports Betting,United States, Australia
https://www.globenewswire.com/news-release/2024/08/20/2932765/0/en/Golden-Matrix-Enters-Into-Definitive-Agreement-to-Acquire-a-Controlling-Interest-in-Australian-Based-Classics-for-a-Cause.html