1st Sep 2014 07:01
LONDON (Alliance News) - XLMedia PLC said Monday it has acquired social and mobile gaming marketing company ExciteAd Digital Marketing Ltd for up to USD19 million in cash and shares.
The acquisition is expected to add to earnings immediately. XLMedia said the acquisition was "highly complimentary" to its Media division, and cited benefits of the acquisition including social and mobile expertise, revenue streams from regulated products and markets, a new customer base and expanded geographic reach.
ExciteAd posted pretax profit, excluding share based payments, of USD3.0 million in the year to end-June, on revenue of USD12.8 million. The company was established in 2010 and is based in Israel.
XLMedia will pay USD12 million in cash immediately, with two additional payments of up to USD7 million based on ExciteAd's earnings before interest, tax, depreciation and amortisation in the first and second years after July 1. Of this additional payment, 71% may be satisfied through the issue of new shares in XLMedia.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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