SBC News Voice of the Sports Betting Industry
The acquisition by Gambling.com Group of Freebets.com and all related assets from XLMedia has been completed.
Earlier in March, digital marketing and player acquisition provider Gambling.com announced that it will move forward with the purchase of XLMedia’s sports betting and gaming assets across the European and Canadian markets. These include affiliate sites like Freebets.com, WhichBingo.co.uk, Nettiskasinot.com and Vedonlyonti.com.
The deal has now been brokered for a value between $37.5m and $42.5m, with $20m of that being paid immediately after closing. What’s more, $10m will be paid six months from the acquisition’s date, which took place on 2 April. Another sum of between $7.5m and $12.5m will be paid on the first year anniversary, subject to the revenue performance of the assets during the remainder of 2024.
Gambling.com Group said it anticipates these assets will generate revenue of approximately $10mand incremental adjusted EBITDA of approximately $5mover the remainder of 2024.
Charles Gillespie, CEO and Co-Founder of Gambling.com Group, said: “While expansion of gambling in the US grabs all the headlines these days, many of the industry’s most attractive markets remain in Europe, the historical home of the industry.
“I expect this acquisition to fundamentally change the balance of power within the European online gambling affiliate market and provide Gambling.com Group with a clear path to drive further growth in both our existing European markets as well as new ones.
“As part of the transaction, we are gaining a number of new colleagues in the region. I look forward to sharing our leading technology platform and high-performance culture with our new team members.”
Meanwhile, XLMedia said at the time of last month’s sale announcement that the deal is aimed at ensuring it can “focus on delivering value for shareholders from its North America business,” which is not part of the sale.
Marcus Rich, Chair of XLMedia, added: “The board believes the sale of these assets, which is approximately two times the current market capitalization 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.”
