TIDMXLM
RNS Number : 1956I
XLMedia PLC
10 December 2020
10 December 2020
XLMedia PLC
("XLMedia" or the "Group" or the "Company")
US Sports Acquisition
XLMedia (AIM: XLM), a leading global digital performance
publisher , today announces a significant step forward in its
stated priority to expand its presence in the burgeoning US Sports
market, through the completion, on 9 December 2020, of its
acquisition of the sports gaming and sports betting business of
CBWG Sports ("CBWG").
CBWG, which was formed early in 2020 through a combination of CB
Sports and Warwick Gaming, is a highly successful and fast-growing
digital media publishing group, based in the northeast United
States, focused on professional and college sports, sports gaming
and sports betting. CBWG is registered as a sports gaming affiliate
in six states, including New Jersey and Pennsylvania. The business
owns and operates the sports and
gaming assets CrossingBroad.com , PASportsBooks.com , BetNewJersey.com , EliteSportsNY.com , PromoCodeKings.com and ActionRush.com and already has agreements in place with leading regulated online sportsbooks in the United States. The business also has an agency arm, which partners with leading sports media brands to drive user acquisition in the regulated betting markets of Colorado, Illinois, and Tennessee. Through the due diligence process, management have estimated the owned sites receive around 550,000 visits per month, and generated unaudited Revenue and EBITDA, before founders' compensation, over the trailing 12 months, ending October 2020, of approximately $4.6 million and approximately $2.7 million respectively.
Under the terms of the definitive documents for the acquisition,
XLMedia will pay upfront consideration of USD$12 million in cash
and issue 7,954,546 new XLMedia plc shares (representing an
aggregate value of USD$3.5 million), as well as potential future
contingent consideration of up to an additional USD$9.5 million,
based on net revenue performance of the acquired business, payable
over three years to the end of 2023.
Application will be made to London Stock Exchange for the newly
issued shares to be admitted to trading on AIM, and such admission
is expected to become effective on 15 December 2020. Subject to
certain limited exceptions, the sellers and founders have agreed
not to sell, transfer, or otherwise dispose of the newly acquired
shares for a period of two years after the closing of the
acquisition.
Stuart Simms, CEO of XLMedia commented:
"It is great to have acquired such an attractive set of assets
during an inflection point for the US Sports betting market. On
some estimates, almost 60% of the US population is set to have
legal access to Sports betting by the end of 2022 - this could
include New York, where one of the key assets, EliteSportsNY.com ,
is focused."
"In order to build upon the positive momentum of CBWG, it is
important to retain the team, especially the founders, Kyle Scott
and Jason Ziernicki ; it is great to be able to depend upon their
sports expertise and knowledge. They are also exceptionally keen to
play a central role in the next exciting stage of the journey, both
for this business and for our broader US operations."
CBWG Media Group LLC, CB Sports LLC and Warwick Gaming LLC are
the selling entities of the acquired business.
For further information, please contact:
XLMedia plc ir@xlmedia.com
Stuart Simms, Chief Executive Officer
Iain Balchin, Chief Financial Officer
Kieran McKinney, Investor Relations
www.xlmedia.com
Vigo Communications Tel: 020 7390 0233
Jeremy Garcia
www.vigocomms.com
Cenkos Securities plc (Nomad and Joint Tel: 020 7397 8900
Broker)
Giles Balleny / Max Gould
www.cenkos.com
Berenberg (Joint Broker) Tel: 020 3207 7800
Chris Bowman / Mark Whitmore / Simon
Cardron
www.berenberg.com
Notes:
XLMedia is a leading global digital performance publisher.
Operating globally across a variety of verticals including online
gambling, personal finance and sports, the Group has established
proprietary tools and methodologies to identify and target high
value consumers on behalf of its customers, brands and
operators.
XLMedia has a clear transformation agenda to shape the future of
the performance publishing industry through the:
-- Management of a balanced portfolio of online assets covering
a range of attractive geographie s and verticals
-- Concentration on a much smaller number of publishing assets
that are content-rich, engaging and underpinned by intelligent
market-leading technology, which seek to build stronger lasting
relationships with consumers and enhance monetisation
opportunities
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END
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