Betting media agency XLMedia has confirmed the completion of its recent deal with the performance marketing specialist Gambling.com Group. As previously agreed, the former party divested its sports betting and gaming assets in Europe and Canada in a $42.5 million deal.
The agreement includes a fixed consideration of $37.5 million, which will be paid out in several installments. Under the deal, another $5 million would be payable depending on the assetsβ revenue performance.
The deal closed on April 1. A day later, XLMedia confirmed receipt of the initial cash installment of $20 million.
XLMedia added that it will incur transaction costs over a period of six months to support the migration of its European and Canadian assets. The net proceeds from the fixed consideration after transaction costs are expected to stand at $35 million.
XLMedia added that it intends to use the net cash proceeds to pay the final deferred acquisition payment of $4 million due in 2024. The company will also use some of the money to provide working capital for its business in North America and settle outstanding tax provisions. In addition, the deal will allow the company to pay out dividends to its shareholders.
XLMedia added that the sale of its assets in Canada and Europe is in line with its growing focus on sports in North America. The companyβs ambition is to expand its presence in the key NA market, deepen audience relationship and diversify revenue streams.
XLMedia added that its board will continue to execute the aforementioned strategy while finding new ways to maximize shareholder value.
The New Assets Will Complement Gambling.comβs Business
Gambling.comβs decision to acquire XLMediaβs assets in Europe and Canada, which include Freebets.com, Nettikasinot.com, Vedonlyonti.com and WhichBingo.co.uk, among other smaller affiliates came in the wake of a $50 million credit facility with Wells Fargo Bank.
Upon securing the facility, Gambling.com clearly stated that it is planning to use the proceeds for general corporate purposes, as well as to settle deferred consideration and explore new opportunities for growth. Elias Mark, Gambling.comβs chief financial officer, previously commented on the matter, saying that the credit facility complemented the companyβs already strong balance sheet.
Speaking of strong financial position, Gambling.com recently posted its Q4 and FY 2023 results, demonstrating its financial strength. The performance marketing expert also published its 2024 guidance, saying that it expects revenue of $129-133 million and adjusted EBITDA in the range between $44 million and $48 million.