REG - XLMedia PLC - Divestment of Europe and Canada assets completed

XLMediaAnnouncement

02/04/2024 16:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240402:nRSB0251Ja&default-theme=true

RNS Number : 0251J  XLMedia PLC  02 April 2024

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014. Upon the publication of this announcement, this
information is now considered to be in the public domain.

 

2 April 2024

XLMedia PLC

("XLMedia" or the "Company" or the "Business")

 

Divestment of Europe and Canada assets transaction completed

 

Binding agreement to sell Europe and Canada assets for a total
consideration up to $42.5 million completed on 1 April 2024

 

XLMedia (AIM: XLM), today announces the completion of the sale of
its Europe and Canada sports betting and gaming assets (the "Assets") to
Gambling.com Group Limited ("GAMB", the "Purchaser") on 1 April 2024 and
confirms receipt of the initial cash installment of $20.0 million on 2 April
2024.

The terms of the agreement (the "Transaction") include a total consideration
up to $42.5 million, with fixed consideration of $37.5 million ("Fixed
Consideration"). In addition, the Transaction provides earnout consideration
of up to a further $5.0 million based on revenue performance ("Earnout
Consideration").

The Company will incur transaction costs over a period of six-months to
support the migration of the Assets. The net proceeds from the Fixed
Consideration after transaction costs are expected to be approximately $35.0
million ("Net Cash Proceeds").

The Board is pleased to be able to realise substantial value from the
Transaction and intends to use the Net Cash Proceeds to pay the final deferred
acquisition payment of $4.0 million due in 2024, provide working capital for
the North America business and settle outstanding tax provisions while
returning cash to shareholders.

The Business's strategy continues to focus on North America Sports including
expanding its footprint, deepening audience relationships and diversifying
revenue streams with the goal of developing more predictable, stable income
and building its Gaming vertical.  XLMedia's Board will continue to execute
this strategy whilst also evaluating ways to maximise shareholder value.

 

 

For further information, please contact:

 XLMedia plc                                               ir@xlmedia.com

 David King, Chief Executive Officer                       via Vigo Consulting

 www.xlmedia.com (http://www.xlmedia.com/)

 Vigo Consulting                                           Tel: 020 7390 0233

 Jeremy Garcia / Fiona Hetherington / Kendall Hill

 www.vigoconsulting.com (http://www.vigoconsulting.com/)

 Cavendish Capital Markets Limited (Nomad and Broker)      Tel: 020 7220 0500

 Giles Balleny / Callum Davidson

 www.cavendish.com (http://www.cavendish.com/)

 

About XLMedia:

XLMedia (AIM: XLM) is a sports and gaming digital media company that creates
compelling content for highly engaged audiences and connects them to relevant
advertisers.

The Group manages a portfolio of premium brands in regulated markets which are
designed to reach passionate people with the right content at the right time.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  DISEALLAESFLEFA