XLMedia has completed the sale of its Europe and Canada sports betting and gaming assets to Gambling.com Group for a total consideration of up to $42.5m.
Assets that are part of the deal include Freebets.com, WhichBingo.co.uk, Nettikasinot.com and Vedonlyonti.com, together with smaller Europe and Canada sites.
Entering into the binding agreement last month, the deal has a total consideration of up to $42.5m, including a fixed sum of $37.5m plus a potential earnout of up to $5m based on revenue performance.
The sale was completed on April 1 and an initial cash instalment of $20m was received by XLMedia the following day as part of the fixed sum.
In addition, $10m will be paid on the six-month anniversary of closing, while $7.5m together with any earnout consideration will be paid on the first anniversary of completion.
Gambling.com expects the assets to generate approximately $10m in revenue and approximately $5m in adjusted EBITDA over the balance of 2024.
Charles Gillespie, CEO and Co-Founder of Gambling.com Group, commented: “While the 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.”
XLMedia noted that transaction costs will happen over six months to support the assets migration, with net proceeds from the fixed consideration after transaction costs expected to be around $35m.
Proceeds from the transaction will be used to cover the asset transition costs, pay the final deferred US acquisition payment, settle outstanding tax provisions and provide working capital to support the North American business while returning cash to shareholders.
Last month, Gambling.com reported a quarterly record for the fourth quarter of 2023 thanks to consistent performances, especially in North America over the past four years.