2nd Sep 2015 08:21
LONDON (Alliance News) - XLMedia PLC on Wednesday said that ExciteAd Digital Marketing Ltd has performed strongly in the year since it was acquired, prompting the company to waive a key condition for the release of the second part of the deferred payment for the deal.
London-listed XLMedia - which aims to direct web traffic to online and mobile businesses, making money based on a share of revenue generated, fees based on users acquired or a fixed amount - bought the social gaming marketing company in a deal worth up to USD19 million in September 2014.
Having paid USD12 million in cash when the deal was agreed, XLMedia said it has now paid a further USD3.5 million due to ExciteAd's performance since acquisition. The company also is now waiving the the performance condition related to the remaining USD3.5 million contingent payment.
XLMedia said the decision to waive the performance condition was due to the "high earnings visibility" at ExcitedAd, in a move to "accelerate" the integration of the acquisition into the broader group.
"We are very pleased with the strong performance of EDM, and look forward to the additional benefits of scale we will see through the acceleration of its integration. We continue to evaluate a number of prospective acquisition targets in order to add new technologies and skills that will complement our existing suite of user engagement and advertising tools," Chief Executive Ory Weihs said in a statement.
Payment of the contingent USD7 million total was to be based on ExcitedAd's earnings before interest, tax, depreciation and amortisation in the first and second years after July 1, 2014, according to the statement released to disclose the acquisition.
Shares in XLMedia were up 6.3% at 65.26 pence on Wednesday morning in London.
By Samuel Agini; [email protected]; @samuelagini
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