Jersey-based online gaming marketing business XLMedia has agreed to acquire an additional 21 per cent stake in an unnamed joint venture which operates the company’s Finnish affiliate network for a cash consideration of $1.5m.
The company said that Finland is one of the group's primary markets for content and search where it currently provides its services through this exclusive contractual joint venture.
“XLMedia is already responsible for the management of the JV and this acquisition will increase the group's earnings available for distribution to shareholder as dividends in accordance with the company's stated dividend policy to pay out at least 50 per cent of retained earnings in any financial year,” said the company in a statement.
The acquisition takes XLMedia's holding in the joint venture to 93 per cent. For the year ended June 30th, the JV recorded operating income of $9.2m.
The consideration will be payable in cash, with an initial amount of $0.5m payable on closing and the remainder due no later than December 25th. Closing of the deal is expected on September 30th.
Shares in XLMedia plc (Co. Data) (AIM:XLM) have dropped 2.54 per cent to 57.50 pence per share in London Monday following the announcement, having gained 4.42 per cent in trading Friday.