Zona de Azar USA – XLMedia to Sell North America Business to Sportradar

USA.- October 22, 2024 www.zonadeazar.com Affiliate XLMedia has announced a conditional agreement to sell its North America business assets to Sportradar for up to $30m.

This deal includes an upfront payment of $20m, with an additional $10m payable in April 2025, contingent on performance.

The transaction is expected to be finalised after shareholder approval at a General Meeting on 7 November 2024.

Following the sale, XLMedia will become a cash shell under AIM Rule 15, focusing on distributing the proceeds from both this sale and a previous transaction involving its European and Canadian assets.

The combined proceeds from both disposals could total up to $72.5m before costs and liabilities.

The North America business contributed an estimated $27.5m in revenue and $5.5m in adjusted EBITDA in 2023, making Sportradar’s offer a valuation of approximately 5.5 times its adjusted EBITDA.

XLMedia’s Board determined that selling the North America business would deliver the best value to shareholders. While the US market presents long-term growth opportunities, the Board believes that the company’s current scale limits its competitive position in the region.

The sale to Sportradar therefore represents a decision that aims to unlock value and return proceeds to shareholders.

Commenting on the development, Chairman Marcus Rich stated: “In an ongoing commitment to maximise shareholder value, following the Europe Disposal, the Board is pleased to have reached an agreement to sell the North America Business to Sportradar pending shareholder approval.

“We anticipate an initial distribution from the net proceeds to shareholders before year-end.”

Edited by @pererarte   www.zonadeazar.com