Sportradar is set for a US$30m acquisition of the North American business of XLMedia, the growth of which “did not match” original plans. The agreement follows that of XLMedia European business in March this year for up to $42.5m.
XLMedia said that 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 also mindful that following the Europe disposal, the continuing business of the North America business may be considered too small to remain listed,” the company added.
“The board, management and staff have worked hard to successfully integrate the three acquired entities to create the North America business, including the development of the Media Partners business and the strong relationships with the major US operators. However, the growth of its US revenue streams did not match the group's original plans.”
XLMedia said Sportradar’s offering presents a “fair net present value” for the standalone North America business’ future revenue and profitability.
Marcus Rich, chairman of XLMedia, commented: "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."
The revenue and estimated adjusted EBITDA 2023 attributable to the North America business for the year ended December 31, 2023, was US$27.5m and US$5.5m, respectively.
Source: GMB
