XLMedia PLC Acquisition of a performance media company (2618Q)
16 Junho 2015 - 3:00AM
UK Regulatory
TIDMXLM
RNS Number : 2618Q
XLMedia PLC
16 June 2015
For immediate release 16 June 2015
XLMedia PLC
("XLMedia" or "the Group" or "the Company")
Acquisition of a performance media company
XLMedia (AIM: XLM), a leading provider of digital performance
marketing services, is pleased to announce that it has entered into
an agreement to acquire a majority stake of 54% in Marmar Media Ltd
("Marmar"), a performance media company for web and mobile for a
consideration of up to $7.36 million in cash. The acquisition is
expected to be immediately earnings enhancing and is highly
complementary to the Group's established media division.
Marmar (www.marmarmedia.com) specialises in performance based
marketing for a number of verticals including apps, software
entertainment and to a lesser degree gambling. Marmar generated
revenues and EBITDA of $11 million and $2.2 million (non GAAP) in
FY 2014 respectively. Over 30% of Marmar's revenues are derived
from mobile devices and Marmar expects this rate to grow to over
50% in the current year. Marmar was founded 2011, is based in Tel
Aviv and has 16 staff.
Strategic rationale for the acquisition
XLMedia's stated strategy is to expand its business both
organically and through acquisitions, while diversifying into new
products and markets, and act as a consolidator in a fragmented
market.
The acquisition of Marmar is highly complementary to the Group's
existing business, and delivers the following key benefits:
-- Broaden the Group's Mobile capabilities - Additional mobile
know-how and capabilities, which will further strengthen XLMedia's
growth in the mobile channel
-- Market and product diversification - Marmar's main activities
are in marketing apps, e-commerce and software products. Marmar's
main markets are the US and Europe, adding further product and
geographic expansion of the group's historical core markets
-- Benefits of scale - Marmar's business is similar in many
aspects to the Group's media divisions and therefore once
integrated management will be able to use the Group's facilities
and infrastructure in order to enhance performance and support
further growth. Integrating Marmar into the Group should also
provide benefits of scale as a result of adding more campaigns and
revenues using the existing operational structure.
Key terms
The Group will buy 54% of Marmar's share capital from its
current sole shareholder, Mr. Oren Avidor, for a total
consideration of up to $7.36 million in cash, comprised of an
initial payment of $5.36 million and additional contingent
consideration of up to $2 million based on Marmar's EBITDA
performance during the year ending March 31, 2016. Marmar's key
management will remain in their position following closing.
Acquisition is expected to complete on 1 July 2015.
Ory Weihs, Chief Executive Officer of XLMedia, commented:
"We are delighted to announce the acquisition of a majority
stake in Marmar Media, which is a highly complementary fit to the
Group's existing business. One of the reasons for becoming a public
company was to enable the Group to grow through acquisitions and
act as a consolidator in what we believe is a highly fragmented
market. We believe this transaction is another good example of such
an opportunity to add another performance media company to the
Group, delivering value to our shareholders and scale to our
business.
"We have been investing significantly in both our infrastructure
and technology over the last 12 months, and believe we are now
beginning to see the real benefits of this investment delivering
both scale and profit growth for the Group.
"Marmar complements the group's offering, bringing additional
know how and mobile understandings in additional markets and
products. The board is happy to further diversify the group's
revenues and customer base. We look forward to working with the
Marmar management team to integrate the business and grow the media
division together. "
For further information, contact:
XLMedia plc Ory Weihs www.xlmedia.com Tel: 020 8817 5283
Vigo Communications Jeremy Garcia Tel: 020 7016 9570
/ Fiona Henson www.vigocomms.com
Cenkos Securities plc (Nomad Tel: 020 7397 8900
and Joint Broker) Ivonne Cantu
/ Callum Davidson www.cenkos.com
Liberum (Joint Broker) Neil Tel: 020 3100 2000
Patel www.liberum.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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