XLM Xlmedia Plc

TIDMXLM

RNS Number : 8074B

XLMedia PLC

15 January 2018

 
   15 January 2018 
 

XLMedia PLC

("XLMedia" or the "Group" or the "Company")

Acquisition

EUR15.0 million acquisition of key online assets

XLMedia (AIM: XLM), a leading provider of digital performance marketing, is pleased to announce that it has agreed to acquire a number of leading Finnish gambling related informational websites from Good Game Ltd (the "Acquisition") for a total cash consideration of up to EUR15 million. The Acquisition is expected to complete during the first quarter of 2018 and to be immediately earnings enhancing in the current financial year following completion.

The Acquisition comprises a leading network of gambling related websites focused on web and mobile traffic, specialising in casino games. Active since 2009, the websites provide visitors with useful information such as reviews of online casino websites, comparison of promotions offered by different brands and information on payment solutions. Traffic to and followers of the websites has steadily grown since inception and they now refer a significant number of players to their customers' websites.

For the 12 months ended 30 November 2017 the Acquisition recorded revenues of EUR 1.66 million with an EBITDA margin of at least 75% (unaudited).

The Acquisition represents a further revenue enhancing addition to the Group's website portfolio, and will generate synergies and economies of scale benefits following full integration, which is expected to be completed within the first six months of 2018.

Through the Acquisition XLM will acquire a network of domains and websites (the "Network"), including the underlying content management systems, social network accounts, related intellectual property rights as well as the affiliate accounts associated with the Network. The total consideration includes an initial payment of EUR7.0 million payable in milestones relating to the transfer of assets which are expected to be released within up to three months, and up to an additional EUR7 million contingent on significant growth in performance of the Acquisition during a period of 6 months. In addition, the Group will pay a share of the Acquisition's revenues during a three months' transition period which is estimated to be approximately EUR0.5 million but in any case limited to a maximum of EUR1 million. Under the terms of the agreement, during such transition period the vendor will provide support, training and maintenance services as required for a smooth migration. Once migration is completed the Group will integrate the operations of the network into its existing operations.

Chief Executive Officer of XLMedia, Ory Weihs, commented:

"As we develop our business, we continue to capitalise on the infrastructure we have built, and take opportunities to expand further through acquisitions. With our current network, technology and sector expertise, the additional assets will be integrated easily into our operation, adding to our strong base of assets and recurring revenues.

"We are seeing good opportunities to buy additional assets in our key verticals, and we plan to continue acquiring domains and websites as part of our ongoing growth strategy."

For further information, contact:

 
 XLMedia plc 
  Ory Weihs 
  www.xlmedia.com 
  Tel: 020 8817 5283 
  Vigo Communications 
  Jeremy Garcia / Fiona Henson / Kate Rogucheva 
  www.vigocomms.com 
  Tel: 020 7830 9703 
  Cenkos Securities plc (Nomad and Joint 
  Broker) 
  Camilla Hume/ Mark Connelly 
  www.cenkos.com 
  Tel: 020 7397 8900 
  Berenberg (Joint Broker) 
  Chris Bowman / Mark Whitmore 
  www.berenberg.com 
  Tel: 020 3207 7800 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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January 15, 2018 02:00 ET (07:00 GMT)

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