XLMedia shareholders back Sportradar’s $30m acquisition of US assets
More than 99% of shareholders support the proposal, which will begin the process of XLMedia eventually winding up in late 2025
XLMedia shareholders have overwhelmingly approved Sportradar’s $30m (£23.2m) acquisition of the affiliate’s North America-facing assets to kick start the winding down of the AIM-listed firm.
Following a general meeting this morning, 7 November 2024, 99.5% of XLMedia shareholders gave their approval to the transaction.
That percentage equates to 144,158,876 votes, with just 0.5%, or 723,071 votes, going against the proposed deal.
The approval means the transaction will now proceed along its previously communicated timeline, with Sportradar scheduled to make an initial $20m cash payment on 12 November.
The XLMedia board expects to retain $18m in net cash, with a return to shareholders slated for some time in Q4 from the proceedings.
From that date, XLMedia will be classified as a cash sell and retain only 5% of its revenue sources.
Then, in April 2025, the affiliate will receive further payments from both Sportradar and Gambling.com Group, which acquired various European and Canadian assets this year.
Come 12 May, XLMedia will suspend its shares on the London AIM, with 12 November earmarked as the date of its removal before winding-up proceedings will begin.
The deal values XLMedia’s North American assets at 8.8p a share, with the division having reported revenue and adjusted EBITDA of $27.5m and $5.5m, respectively, in the 12 months up to 31 December 2023.
Sportradar will snap up CBWG, Sports Betting Dime and Saturday Football Inc as part of the deal, with XLMedia’s North American assets live in 21 US states for sports betting and four for online casino.
The move marks Sportradar’s entry into the affiliate space, with the supplier looking to complement its existing marketing technology products such as ad:s.
Sportradar will release its Q3 earnings report later today ahead of the US market’s opening, where management will be pressed on the decision to acquire the XLMedia assets.