Jersey-based online gaming marketing business XLMedia has completed the acquisition of an unnamed Scandinavian affiliate network, allowing it to enter the regulated Danish iGaming market.
XLMedia has acquired the network for a cash consideration of $2.3m, gaining access to sites reviewing online casino and poker offerings, primarily in Denmark.
The company described the sites as generating “high value added content”, and allowing XLMedia to refer significant amounts of customers to partner brands.
The deal, which is expected to be earnings accreditive during its 2014 financial year, is said to complement XLMedia’s existing Scandinavian presence as well as providing it with a route into the Danish market.
The latest acquisition follows its purchase of two North American domains during the first half of the year, where it has established partnerships with 888.com and the Borgata in New Jersey, and a deal covering Nevada and New Jersey with Caesars Interactive.
The company’s chief executive Ory Weihs said that XLMedia would continue to acquire domains and websites as part of its growth strategy, as well as looking to increase its presence in fully regulated markets.
“Since our IPO in March this year, we have continued to make good progress with positioning XLMedia to capitalise on the significant growth opportunities in the online gaming sector,” Weihs explained. “This acquisition represents a complementary fit for our business, strengthening our reach in Scandinavia and providing entry into Denmark, a fully regulated territory.”
Shares in XLMedia plc (LSE:XLM) have gained 1.82 per cent to 56.00 pence per share in London this morning, having slumped dramatically since the publication of the company’s full year results for 2013. When the results were released in May the company saw its share price fall 24 per cent, down from 73.99 pence per share.
Mikkel Pedersen, CEO of online marketing company SunCore Innovation, confirmed to Gaming Intelligence Monday that the company's Casinoportalen was the affiliate company acquired by XLMedia.
Casinoportalen provides news and recommendations on the Danish iGaming market, providing players with news in a number of languages including English, Danish, Swedish, Norwegian, German, French and Spanish among others.
Pedersen said that the Casinoportalen team will be working with XLMedia, but added that the rest of the SunCore team will not be joining the company.