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XLMedia PLC on Thursday said that it signed an agreement to sell its Europe and Canada sports betting and gaming assets to Gambling.com Group Ltd. XLMedia shares surged 54% to 9.60 pence each on late Thursday morning in London. The London-based global digital media company said the sales are for a total of up to $42.5 million and represent an uplift to their expected 2023 earnings before interest, tax, depreciation and amortisation. The sale price includes a fixed sum of $37.5 million and a potential earnout of up to $5.0 million. XLMedia said the potential total sale price is 6.4 times higher than the estimated adjusted Ebitda for the assets of $6.6 million, and 3.5 times higher than the expected 2023 total adjusted Ebitda of $12.0 million for the whole company. XLMedia explained that since it launched its North America Sports market presence in 2021, it has evolved to a North American Sports-led business, away from a Europe Gaming-led business. It said that North America Sports represented 65% of revenue in 2022. Meanwhile, the company clarified that it is as of now not in the process of being fully bought. The company said: ‘The board confirms it had been in discussions with potential acquirors regarding the possibility of a sale of the whole company, but it was clear while there was demand for the assets, given the prevailing share price, a sale of the whole company was unlikely to create the most value for shareholders.’ Looking ahead, XLMedia said: ‘The near-term focus will be to continue to drive organic revenue growth while improving margins and generating revenues. The group does not have any current plans for acquisition in North America.’ Copyright 2024 Alliance News Ltd. All Rights Reserved.
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