CentralNic Group PLC (AIM:CNIC) has said it is to acquire a portfolio of revenue-generating niche websites in a US$5.2mln deal which is expected to be immediately earnings accretive.
The company said the deal is expected to complete immediately, will be financed from available liquidity, and the assets are expected to generate at least US$1.9mln of annualised revenue and US$1.4mln of annualised EBITDA.
It is described as being part of a vertical integration strategy, providing the group's online marketing segment with proprietary, exclusive special interest traffic to monetise.
“Exclusive access to proprietary website traffic is a pillar of our online marketing segment's sustainable competitive advantage,” CentralNic chief executive Michael Riedl said in a statement.
“This acquisition will give us more exclusive direct navigation traffic, augment margins for our fast-growing online marketing business and generate attractive cashflow returns," he added.