Golden Matrix Acquires Controlling Interest in Online Discount Platform

Golden Matrix Group, Inc. is an online platform, content developer, and licensor for social gaming. The company has announced the acquisition of an 80% controlling interest in Classics for a Cause Pty Ltd., or CFAC, in a strategic expansion into the consumer loyalty and rewards industry, which should synergize with its existing portfolio.

GMGI Hopes for International Expansion

This acquisition represents a significant leap for GMGI as it further diversifies its portfolio from gaming and sports betting into a burgeoning sector that can support its existing operations. CFAC provides exclusive discounts from Australian retailers to paying members on its business-to-consumer platform, coupled with high-end promotional giveaways that include classic American and Australian cars, caravans, cash, and holidays.

CFAC founder Thomas Bailey will remain onboard in an executive role and play a significant part in the company’s future growth, leading to potential expansion into the United States. His experience with successful startups will be invaluable in integrating CFAC into the broader Golden Matrix portfolio and bolstering its global footprint through shared synergies.

We are incredibly excited to join forces with GMGI and contribute to their ongoing success. This partnership offers a significant opportunity to expand CFAC into new markets and elevate the company to new heights.

Thomas Bailey, CFAC founder

Industry experts remain optimistic regarding the consumer loyalty and rewards market as forecasts from Research and Markets project a compound annual growth rate of 9.5% from 2024 to 2028. From $3.64 billion in 2023, the global consumer loyalty and rewards market size should grow to $5.79 billion by 2028, benefiting from rising consumer demand for value-added services and personalized rewards.

CFAC Brings a Lot to the Table

CFAC has displayed robust financial performance, generating over $10 million in sales and $1.9 million in operating profit before tax for the year ending 30 June 2024. The company has an established and steady client base of over 300,000, with 10,000+ active monthly paying clients and 50,000 followers on social media.

GMGI’s decision to acquire CFAC aligns with its strategy of integrating profitable and scalable businesses. The acquisition is valued at approximately $8.4 million, with 70% of the purchase price paid in cash and 30% in restricted GMGI common stock. Golden Matrix CEO Brian Goodman added that the acquisition perfectly fit the company’s growth strategy and would be integral to the planned US expansion.

We are confident in our ability to scale CFAC, implement cost efficiencies, upgrade its technology, and further strengthen its free cash flow.

Brian Goodman, Golden Matrix CEO

This strategic move aligns with GMGI’s previous acquisition of MeridianBet Group, which has resulted in significant dividends. The company hopes to close the acquisition within the next few days, with an effective closing date of 1 August 2024. GMGI hopes to repeat its past successes, thus delivering enhanced shareholder value and bolstering customer engagement.