XLMedia expands offering with acquisition of sports betting affiliate14th August 2014 10:02 am GMT
Jersey-based online gaming marketing business XLMedia has enhanced its offering with the acquisition of an unnamed sports betting affiliate business for a total cash consideration of $6.7m.
XLMedia said that the acquired website is focused on UK web and mobile traffic, and specialises in sports betting.
As part of the transaction, the company has also agreed to purchase a second website providing content for casino.
According to XLMedia, the websites have been building a steadily growing traffic and social followers since launching in 2006, providing visitors with information such as betting tips and reviews of UK online casino websites.
The websites refer significant number of players to their customers' websites, and generated EBITDA of £0.9m for the year ended June 30th.
XLMedia said that the acquisition is another “revenue enhancing” addition to the group's website portfolio and is the first significant assets targeted at the UK market.
The addition of sports betting to its offering will also enable the company to target a broad reach of potential players, providing content rich information and referring players to sports betting sites.
The company said that by utilising its tools and know-how, management expects to scale up the purchased websites into additional languages and markets as well as improve the websites technologically in order to enhance revenues.
“Since our IPO in March this year, we have continued to extend our network with complementary additions,” said XLMedia CEO Ory Weihs. “With our current network focused on casino products, we see good opportunities in the market to buy additional assets in the sports betting arena. In addition, the UK market is a mature, established market where we see growth opportunities going forward.”
Under the purchase agreement, XLMedia will purchase domains and websites, including the underlying content management system, social network accounts, and related intellectual property rights.
The initial consideration of $5.0m will be payable one month from closing, with the remainder payable 12 months from closing.
“We believe with our know-how and core competencies we will be able to optimise the new assets and integrate them into our network, as we continue to grow organically as well as through acquisitions, and enjoy the benefits of scale in this business,” said Weihs.
The company said that it plans to continue buying domains and websites as part of its ongoing growth strategy, as well as to increase its presence in regulated markets.
Shares in XLMedia plc (Co. Data) (AIM:XLM) were trading up marginally by 0.41 per cent to 48.70 pence per share in London Thursday.