21st Oct 2024 11:35
(Alliance News) - XLMedia PLC on Monday announced it has entered into a conditional agreement for the sale of its North America business to Sportradar AG, rendering the company a cash shell after its completion.
Shares in the London-based sports digital media company were up 37% at 12.72 pence each in London on Monday morning.
The group said the USD30 million disposal was subject to shareholder approval at a general meeting on November 7. Sportradar, a Switzerland-based sports data business, now holds around 31% of the XLMedia share capital, to instruct a vote in favour of the resolution.
This follows the USD42.5 million disposal of the company's Europe and Canada assets to Gambling.com Group Ltd in March. The North America business was the sole remaining material asset in the group, alongside small residual income from an unsold legacy network business in Europe.
However, XLMedia said: "While it was confident that the US market would provide long-term success for a larger organisation, the board believes XLMedia's current scale on a standalone basis could impact its ability to compete in the evolving US market. In addition, the board is mindful that following the Europe disposal, the continuing business of the North America business may be considered too small to remain listed".
The North America business generated USD27.5 million in revenue, and USD5.5 million in adjusted earnings before interest, tax, depreciation and amortisation in calendar 2023.
Following the disposal, XLMedia will become an AIM rule 15 cash shell, focused solely on the distribution of proceeds to shareholders from the North America, Europe and Canada disposals.
Chair Marcus Rich said: "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."
By Emily Parsons, Alliance News reporter
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