XLMedia selling Europe and Canada affiliate businesses to Gambling.com

[The Buzz]

Last week, XLMedia announced its agreement to sell its assets in Europe and Canada to Gambling.com for up to $42.5 million. The digital media specializing in managing sports and gaming brands, had indicated its intention to explore opportunities for creating shareholder value through additional asset sales.

XLMedia plans to use the proceeds to cover asset transition costs, pay the final deferred US acquisition payment and settle outstanding tax provisions and provide working capital to support the North America business while returning cash to shareholders.

From the press release:

Chair Marcus Rich said: "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 legacy liabilities, provide working capital and return cash to shareholders."
Following completion of the sale, XLMedia will be reorganised to support the North America business.

"The group's strategy for North America remains to expand the Sports footprint, deepening audience relationships and diversifying revenue streams with the goal of more predictable, stable income," it said.

"Additionally, the business will seek to drive gaming in select markets through quality content and engaging consumer features to capitalise on the high-margin vertical."

Read more here: https://www.sharecast.com/news/aim-b...-16476338.html

[onlinebetdotcom]

Read that Gambling .com group has taken out 50 M euros loan likely for more acquisitions.

[Pokerface]

Certainly had a very positive impact on their stock prices on Wednesday.

[Sanna Heinonen]

Thank you for sharing this news. Somehow I had missed this and it's interesting.