XLMedia has announced the completion of the sale of its Europe and Canada sports betting and gaming assets to Gambling.com Group Limited  on 1 April 2024 and confirms receipt of the initial cash installment of $20.0 million on 2 April 2024.

The terms of the agreement (the “Transaction”) include a total consideration up to $42.5 million, with fixed consideration of $37.5 million (“Fixed Consideration”). In addition, the Transaction provides earnout consideration of up to a further $5.0 million based on revenue performance (“Earnout Consideration”).

The Company will incur transaction costs over a period of six-months to support the migration of the Assets. The net proceeds from the Fixed Consideration after transaction costs are expected to be approximately $35.0 million (“Net Cash Proceeds”).

The Board is pleased to be able to realise substantial value from the Transaction and intends to use the Net Cash Proceeds to pay the final deferred acquisition payment of $4.0 million due in 2024, provide working capital for the North America business and settle outstanding tax provisions while returning cash to shareholders.

The Business’s strategy continues to focus on North America Sports including expanding its footprint, deepening audience relationships and diversifying revenue streams with the goal of developing more predictable, stable income and building its Gaming vertical.  XLMedia’s Board will continue to execute this strategy whilst also evaluating ways to maximise shareholder value.