Gambling.com Group Seals the Deal on XLMedia’s European and Canadian Assets

A Strategic Expansion in Key Markets

Gambling.com Group’s decision to acquire XLMedia’s sports betting and gaming assets marks a pivotal step in its growth strategy.

The acquisition encompasses affiliate sites like Freebets.com, WhichBingo.co.uk, Nettiskasinot.com, and Vedonlyonti.com, thereby bolstering the company’s portfolio and presence across Europe and Canada.

The Financial Blueprint of the Acquisition

Valued between $37.5 million and $42.5 million, the acquisition deal was structured with an upfront payment of $20 million at closing.

Subsequent payments include $10 million six months post-acquisition, with an additional $7.5 million to $12.5 million due on the first anniversary, contingent upon the revenue performance of the acquired assets through the remainder of 2024.

Gambling.com Group anticipates these new assets will contribute approximately $10 million in revenue and an incremental adjusted EBITDA of around $5 million for the latter part of 2024.

A Vision for European Dominance

Charles Gillespie, CEO and Co-Founder of Gambling.com Group, expressed his vision for the acquisition, stating “While 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.”

Marcus Rich, from XLMedia, echoed that statement saying “The board believes the sale of these assets, which is approximately two times the current market capitalization of the whole company, is an excellent outcome for XLMedia and its shareholders.

“Importantly, this transaction will allow the company to clear legacy liabilities, provide working capital and return cash to shareholders.”