by Richard Hill
1 min read
1 min read

XLMedia’s Sale to Gambling.com European and Canadian Projects

XLMedia's sale of its European and Canadian sports betting and gaming assets to Gambling.com for up to $42.5 million aligns with its strategic goals of maximizing shareholder value and targeting growth. The move improves financials and boosts working capital. XLMedia aims to concentrate on the North American market.
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XLMedia’s Asset Sale

XLMedia has decided to sell its sports betting and gaming assets in Europe and Canada to Gambling.com (GAMB) for an initial $37.5 million, with a possible extra $5 million later. This decision aligns with XLMedia’s efforts to make more money for its shareholders. The deal includes projects like Freebets.com, WhichBingo.co.uk, Nettikasinot.com, and Vedonlyonti.com. It’s part of their plan to focus more on the North American market, where they see better chances to grow.Financial Implications

The sale process started back in December.

The $42.5 million value is 6.4 times the estimated adjusted EBITDA of $6.6 million for the assets, according to the FY2023 results.

This total sum also represents 200% of the group’s entire market capitalisation as of March 2024.

How the money from the sale will be used

XLMedia has stated that the proceeds from the sale will cover transaction costs and outstanding taxes. Additionally, the company plans to return money to shareholders and provide working capital to support its North American projects.

Strategic Direction and Long-Term Goals

The company has been refocusing its efforts on the North American markets, especially on sports and betting.

In 2022, North American sports contributed to 65% of the company’s revenue. By selling its European and Canadian projects, the company intends to concentrate on increasing its audience in North America.

A Statement from Marcus Rich

“The Board believes the sale of these assets, which is approximately two times the current market capitalisation of the whole company, is an excellent outcome for XLMedia and its shareholders. Importantly, this transaction will allow the company to clear legal liabilities, provide working capital and return cash to shareholders.”

— Marcus Rich, Chair of XLMedia

“By divesting its European and Canadian assets, the company intends to concentrate on expanding its footprint, diversifying revenue streams, and enhancing audience relationships in the North American market”.

— Marcus Rich, Chair of XLMedia
XLMedia’s plan to sell its European assets and concentrate on North America is very similar to what Catena Media is doing. Both companies are selling projects in Europe and focusing on growing in America.

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