The XLMedia board defined the offer as a reasonable net present value for the firm, taking all variables into consideration.
XLMedia, a sports and gaming digital media firm, has agreed to sell its remaining North American operations to Sportradar, a Swiss sports data expert.
Under this conditional deal, Sportradar will acquire the remaining XLMedia North American business for $30 million in cash.
XLMedia Failed to Meet Its Objectives in America
According to XLMedia, the deal will be completed shortly after its general meeting on November 7. According to the deal, Sportradar will pay $20 million upon completion, plus an extra $10 million if the assets function satisfactorily by April 2025.
The corporation stated that it was sure that the thriving gaming industry in America will pave the path for long-term success for the company. However, the circumstances raised questions about the company’s capacity to compete in the competitive US market.
For reference, XLMedia’s North American business generated $27.5 million in sales in 2023, with a projected adjusted EBITDA of $5.5 million. However, these results fell short of XLMedia’s projections, causing the company to accept Sportradar’s acquisition offer. The former company’s board assessed the offer as a reasonable net present value for the firm, taking all variables into account.
Following this new divestment, XLMedia will become a cash shell corporation that will disperse the revenues from the sale in North America, as well as the previously announced sales in Canada and Europe. The whole transactions generated $72.5 million in cash before expenses and liabilities, greatly above the initial forecasts.
XLMedia head Marcus Rich stated that his team expects a first distribution of net cash to shareholders before the end of 2024.
XLMedia will stop trading shares by May.
XLMedia began selling off some of its properties earlier this year in response to poor financial performance. In March, the company decided to sell its Freebets division to Gambling.com. This purchase was made feasible by Gambling.com’s $50 million credit line with Wells Fargo, which it obtained earlier that month.
While XLMedia expanded its foothold in the United States, it continued to face substantial hurdles. The company’s FY 2023 report showed a 42% reduction in the North America (Sport) sector and a 54% fall in the North America (Gaming) segment.
Following the planned transaction, XLMedia intends to discontinue share trading by May 2025.
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