XLMedia PLC Acquisition of a UK Sports Betting Website (1250P)
14 Agosto 2014 - 5:00AM
UK Regulatory
TIDMXLM
RNS Number : 1250P
XLMedia PLC
14 August 2014
For immediate release 14 August 2014
XLMedia plc
("XLMedia" or "the Group")
Acquisition of a UK Sports Betting Website
XLMedia (AIM: XLM), a provider of digital performance marketing
services, is pleased to announce that it has agreed to acquire a
leading UK Sports betting website for a cash consideration of
US$6.72 million (GBP 4 million).
The acquired website is focused on UK web and mobile traffic,
specialising in sports betting. In addition, as part of the
transaction, the Group will also purchase a second website
providing content for casino. Active since 2006, the websites have
been building a steadily growing traffic and social followers,
providing their visitors with useful information, such as betting
tips and reviews of online casino websites in the UK. The websites
refer significant number of players to their customers' websites.
For the 12 months ended June 2014 the websites recorded an EBITDA
of GBP 920,000 (unaudited).
The acquisition is another revenue enhancing addition to the
Group's website portfolio and complements it in the following
fields:
-- First significant assets targeted at the UK market, a
well-established betting and gambling regulated market.
-- Significantly enhances the Group's offering with a sports
betting website, complementing its existing network focused on
casino products. This addition will enable the Group to target a
broad reach of potential sports betting players, providing content
rich information and referring the players to sports betting
sites.
-- By utilising the Group's 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 the Group operates over 2,000 websites worldwide,
integrating the additional websites into its existing operations is
expected to be relatively fast and at low cost.
The acquisition is another step in a series of domain and
website acquisitions executed since the IPO earlier this year,
aimed at expanding into new territories and products and further
establishing a presence in fully regulated markets.
The Group plans to continue buying domains and websites as part
of its ongoing growth strategy as well as to increase its presence
in regulated markets.
Consideration and key terms
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 US$5.04 million (GBP 3 million) will
be payable one month from closing, with the remainder payable 12
months from closing. Under the terms of the agreement, during the
initial six month period from closing, the vendor will provide
support, training and maintenance services as required for the
smooth migration.
Commenting on the acquisition, CEO, Ory Weihs said,
"Since our IPO in March this year, we have continued to extend
our network with complementary additions. 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.
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."
For further information, contact:
XLMedia PLC Tel: 020 8817 5283
Ory Weihs
www.xlmedia.com
Buchanan Tel: 020 7466 5000
Jeremy Garcia/ Sophie McNulty
/ Clare Akhurst
Cenkos Securities plc Tel: 020 7397 8900
Ivonne Cantu/Callum Davidson
This information is provided by RNS
The company news service from the London Stock Exchange
END
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