Gambling.com Group completes acquisition of XLMedia assets
Group CEO Charles Gillespie predicts purchases will change the balance of power in European igaming market after completion of deal worth up to $42.5m
Gambling.com Group has completed the acquisition of XLMedia’s Freebets.com, as well as related assets, less than two weeks after first announcing the deal.
The initial move was announced last month, following XLMedia’s decision to shed several sites to focus on the North American market.
Gambling.com Group snapped up the assets, which include Whichbingo.co.uk and Vedonlyonti.com, for an initial $37.5m.
The structure of the transaction comprises $20m paid upon closing plus a further $10m to be paid on the six-month anniversary of the completed deal.
An additional $7.5m to $12.5m could also be stumped up on the one year anniversary of the completed deal, subject to revenue performances for the remainder of 2024, which would take the potential total value of the acquisition up to $42.5m.
Charles Gillespie, Gambling.com Group co-founder and CEO, said the purchases could “fundamentally” alter the balance of power in Europe when it comes to the affiliate market.
He remarked: “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,” the CEO added.
Gambling.com Group expects the newly acquired assets to generate approximately $10m in revenue and $5m in incremental adjusted EBITDA over the next eight months.
Speaking to EGR after the deal was confirmed last month, Gillespie suggested Europe was a “less competitive” market than the US.
On the XLMedia front, the firm said it would use the net proceeds of the deal, around $35m, to provide working capital for the North American business, settle outstanding tax provisions and pay a final deferred acquisition payment of $4m.
In a statement, XLMedia said: “The business’ strategy continues to focus on North America sports including expanding its footprint, deepening audience relationships and diversifying revenue streams with the goal of developing more predictable, stable income and building its gaming vertical.
“XLMedia’s board will continue to execute this strategy whilst also evaluating ways to maximise shareholder value.”