Affiliate XLMedia has signed a binding agreement to sell its gaming and sports betting assets in Canada and Europe to Gambling.com Group.
The company announced at the end of last year that it was “exploring the opportunity to create shareholder value through further asset sales.”
Per the terms of the deal, total consideration for the sale is “up to $42.5m, including a fixed sum of $37.5m plus a potential earnout of up to $5m.”
XLMedia said the company “will incur transition costs principally for the migration of technology for a period of six months.” The company went on to add that it will continue to retain its liabilities and debtors once the sale is complete.
XLMedia plans to use the money from the sale to cover its final deferred US acquisition payment, settle tax provisions that are outstanding and cover asset transition costs. The company will also use the proceeds to support its North American business by providing working capital and returning cash to company shareholders.
“The transaction will allow the group to focus on delivering value for shareholders from its North America business which remains well positioned to drive revenues across its North America owned and operated and Media Partnership Business businesses in existing US regulated states and new states when they legalize online sports betting,” the company said in a statement.
XLMedia is an international digital media company that manages a portfolio of brands focusing on sports and gaming throughout regulated markets.
