Sports digital media company, XLMediaannounced on Monday a strategic move that will lead to the sale of its North American business Sportradar AG.
XLMedia revealed details of the deal, confirming that it has reached an agreement. condition of the contract for the purchase and sale of assets with Sportradar.
The acquisition cost of the assets is 30 million dollars.
According to the previous agreement, the latter company will pay up to $30.0 million cash for XLMedia’s North American assets.
The breakdown provided by XLMedia confirms this. US$20.0 million It will be paid upon completion of the acquisition of the asset.
On the other hand, XLMedia can collect up to $10.0 million next Aprildepending on business efficiency.
Marcos RicoPresident of XLMedia, commented on this topic in statement released by the company.
«In our continued effort to maximize shareholder value following the European sale, the Board of Directors is pleased to have reached an agreement to sell the North American business to Sportradar, pending shareholder approval.«he explained.
Rich concluded: “We expect an initial distribution of net proceeds to shareholders before the end of the year.”
XLMedia to become a cash screen under AIM Rule 15
As the head of XLMedia noted, the sale of the company’s North American assets followed a similar move by the company. completed in Europe and Canada.
An estimate provided by the digital sports media company shows that, combined, the sale of the European assets and the North American business, “including all payments due, would generate $72.5 million cash before expenses and liabilities«
XLMedia cited revenue for its North American division of $27.3 million for the year ending Dec. 31, 2023, as well as estimated adjusted EBITDA for the same period of $5.5 million.
The proposed consideration for the company’s North American assets is “an estimated value of up to 8.8 pence per ordinary share and multiple of 5.5 Adjusted EBITDA 2023 for businesses in North America,” as XLMedia explains.
Once the transaction is completed, the company expected to convert to Cash Shell under AIM Rule 15..
After this transformation, the focus will be on Distribute income exclusively to shareholders. accumulated from the sale of the company’s North American and European assets.
However, it is important to note that the sale of XLMedia’s North American business is subject to approval of the company’s shareholders.
This topic will be discussed in the next general meeting company plans November 7, 2024.
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