Golden Matrix Group (GMG), a gambling content developer and social games licensor, is set to acquire an 80% controlling interest in Classics for a Cause (CFAC), a discount platform.
With this business move, the software provider aims to expand into the customer loyalty and rewards segment. GMG plans to strengthen its proprietary portfolio and take it to new heights with the new partner’s assets.
Details of the Acquisition and Its Goals
CFAC is one of the top Australian suppliers of shopping perks, cashback offerings, and other related benefits. The brand heads various charitable initiatives and delivers exclusive discounts from the country’s retailers to its members via a B2C platform.
The studio also organises promo giveaways that comprise:
- caravans;
- classic cars;
- cash rewards, etc.
The latest deal marks GMG’s strategic plan to diversify its portfolio of casino and betting products. Since the customer loyalty and prizes segment is predicted to reach $ 5.79 billion by 2028, it is a very promising agreement for the gambling developer. In this way, the corporation aims to boost shareholder value and improve client engagement rates.
Purchasing CFAC is a financially beneficial decision since the company demonstrated impressive profitability in its latest fiscal year, which ended June 30th, 2024. The firm gained $ 10+ million in sales and $ 1.9 million in operating profits before excluding taxes.
Regarding user acquisition and retention, CFAC can boast the following:
- 300,000+ active customers;
- 10,000+ monthly-paying participants;
- about 50,000 followers on social media platforms.
Additional goals of the deal are the game developer’s desire to integrate lucrative, scalable projects and the discount brand’s ambitions of expanding operations into the US. The contract is estimated at around $ 8.4 million. Nearly 30% of the total price was paid in GMG’s restricted common stock, and 70% arrived in cash.
Comments of the Parties
Thomas Bailey, CFAC’s Co-Founder, will remain in the executive position, investing his rich experience into the parent corporation’s successful future. The expert boasts deep knowledge in launching and running prospering startups. The representative will help integrate his studio into GMG’s portfolio and leverage shared synergy to bolster the international stance.
Mr Bailey expressed excitement about joining forces with the frontrunner and contributing to its upcoming achievements. He is glad the platform now has more chances to enter new markets and deliver even better business results.
GMG’s CEO also complimented the acquisition’s potential and underlined that it perfectly fits the corporate growth strategy, including plans to deploy in the US gaming market. In Brian Goodman's opinion, his enterprise has everything to help the partner scale, upgrade its tech capabilities, boost the current free cash flow, and enhance cost efficiencies.
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