XLMedia Plans to Sell North American Assets to Sportradar AG
XLMedia PLC, one of the companies in the Betplay Capital portfolio, has entered into a conditional agreement to sell its North American business to Sportradar AG. The transaction, valued at up to $30m, is expected to be finalised by the end of 2024 following shareholder approval.
Transaction Overview
The agreement involves the sale of part of XLMedia’s assets related to its North American operations. It includes a payment of $20 million upon completion of the transaction, with an additional $10 million in April 2025 if certain performance targets are met. This sale follows XLMedia’s previous disposal of its European assets to Gambling.com.
Sportradar has secured irrevocable support from key shareholders, representing 31.18% of XLMedia’s ordinary shares. The approval is expected to be granted at the general meeting set for 7 November 2024.
Post-Sale Strategy for XLMedia
Upon completion, XLMedia will focus on its remaining operations, primarily the European market, and will transition into an AIM Rule 15 cash shell. This restructuring will allow the company to distribute proceeds from both the North American and European divestments to its shareholders.
For the North American business, XLMedia reported revenue of $27.5 million in 2023, alongside an adjusted EBITDA of $5.5 million. Based on the agreed sale price, the business was valued at approximately 5.5 times its adjusted EBITDA.
This transaction follows a similar structure to the company’s European disposal, which collectively brings XLMedia’s divestment total to $72.5 million in cash before costs.
XLMedia’s shares are currently trading at around 13 GBX, with an expected increase to 19.9 GBX post-transaction. The proposed transaction signals a broader industry trend, with companies streamlining operations and focusing on core markets to improve profitability and shareholder returns.
About Betplay Capital
Betplay Capital is a Polish investment company run by the Juroszek family: Zbigniew, Mateusz, and Tomasz. Since 2013, they have been investing in various industries, with a primary focus on the iGaming market and related sectors. The company invests both in Poland and in international markets.
Betplay Capital’s portfolio includes sports betting operators, technology providers for the gambling industry and affiliate networks.