An important strategic decision for both parties has been made by Affiliate XLMedia, which has reached a final deal to sell Gambling.com Group its casino and sports betting assets in Canada and Europe.
Subsequent to its earlier declaration concerning the investigation of potential ways to augment shareholder value via asset sales, XLMedia has concluded a legally-binding contract with Gambling.com Group. The action highlights XLMedia’s dedication to using strategic divestitures as a component of its overall business plan.
Financial Terms and Consideration
According to the terms of the agreement, the total consideration for the sale amounts to “up to $42.5 million,” comprising a fixed sum of $37.5 million and a potential earnout of up to $5 million. This transaction is poised to have substantial financial implications for both XLMedia and Gambling.com Group.
XLMedia has indicated that it will incur transition costs primarily associated with the technology migration process for a duration of six months post-sale completion. Furthermore, the company plans to retain its liabilities and debtors post-transaction.
XLMedia intends to allocate the proceeds from the sale towards various financial commitments and strategic initiatives. These include covering the final deferred payment related to its US acquisition, settling outstanding tax provisions, and addressing asset transition expenses. Additionally, the company plans to bolster its North American operations by allocating funds towards working capital and returning cash to shareholders.
XLMedia stressed in a statement that it is dedicated to maximizing shareholder value, especially through its business operations in North America. The firm is still committed to taking advantage of revenue possibilities in US regulated markets, both current and emerging, in order to set itself up for long-term development and profitability.
XLMedia is a well-known digital media firm with a broad portfolio of brands in regulated marketplaces that specializes in gaming and sports. XLMedia, having established a solid presence in the sector, keeps using its knowledge to create value for all parties involved while acclimating to changing market circumstances.
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