Sportradar to pay just $1m earnout for XLMedia’s North American assets
Total transaction amounts to $21m following initial $20m cash payment in Q4 2024, as full-year 2024 performance measured
Sportradar will pay just $1m as part of a performance-related earnout to XLMedia after acquiring its North American assets last November.
As part of the deal, Sportradar paid the affiliate an initial $20m in cash for various sites, including Saturday Down South and Sports Betting Dime, with $10m in potential earnouts originally tagged on.
However, in a release today, 21 March, XLMedia has confirmed that Sportradar will pay just $1m as an earnout, taking the total transaction value to $21m.
The earnout, which is payable next month, was based on revenue and gross profit of the acquired assets for the financial year ending 31 December 2024.
When the deal was announced, XLMedia said that to achieve the full $10m payout, the North American business would need to exceed market expectations.
XLMedia’s North American presence had stretched across 21 states with legalised online sports betting and manifested in both owned and operated sites and media partnerships.
While the affiliate has yet to publish full-year 2024 earnings, in 2023, the North American division reported revenue and adjusted EBITDA of $27.5m and $5.5m, respectively.
The final $21m transaction therefore values the assets at a 3.8x adjusted EBITDA multiple. XLMedia had noted the full $30m valuation represented a 5.5x of adjusted EBITDA.
Elsewhere, XLMedia stated it was due to receive $7.5m from Gambling.com Group on 1 April as part of the sale of its Europe- and Canada-facing assets.
That deal, which could be worth up to $42.5m, was finalised last April. Gambling.com Group paid $20m upon the deal completing, with $10m being paid on the six-month anniversary of closing.
The latest $7.5m payment is the final confirmed tranche, with a potential $5m in earnouts still in the offing.
XLMedia said it will “provide an update in respect of the performance-related element of the Europe disposal in due course”.
The business did note that combined earnouts from both the Sportradar and Gambling.com Group sales would land between $3m and $5m.
XLMedia is now effectively a shell company following its asset divestments, with a sole focus for now on distributing proceeds to shareholders from the deals.
Founded in 2008 and once one of the industry’s largest igaming affiliates, the company is expected to be wound up from November 2025.
Its shares currently trade around 10p in London, way off the peak of around 200p in 2017.