XLMedia PLC (AIM:XLM, FRA:7X3) acquired Saturday Football Inc, an online publisher of US college (American) football news.
The total consideration is US$23.0mln in cash plus US$1.0mln in long term incentive shares.
Founded in 2014, Saturday Football Inc. operates two leading college football media sites that generate an audience of about 10mln visits per month. It has been an agency partner of XLMedia’s since December 2020.
XLMedia management estimated Saturday Football’s sites generated unaudited revenue and underlying earnings (EBITDA), before founders' compensation, over the 12 months ending 31 July 2021, of about US$2.5mln US$606,000 or so respectively.
XLMedia’s management believes that post-integration into the group the assets will generate significantly more revenue due to closer collaboration with CBWG Sports, the betting business it acquired in December 2020.
The addition of Saturday Football Inc to XLMedia's portfolio will create significant cross-marketing opportunities for the wider group and provides good reach across the South and Midwest States, including markets yet to legalise sports betting, XLMedia said.
"This transaction provides additional operation depth and reach to our sports footprint which we believe is fast becoming a significant growth driver for our business,” said Stuart Simms, the chief executive officer of XLMedia.
"With the forthcoming US College Football season about to commence, the timing of this transaction couldn't be better with our growing US presence ideally positioned to further support the team at Saturday Football Inc,” he added.