XLMedia, an affiliate group, has agreed to sell its North American business to Sportradar. The total consideration for the deal is $30 million, or £23 million, or €27.6 million.
SportRadar will pay an initial $20 million under the terms of agreement to XLMedia on completion of the deal. The latter will be due up to an additional $10 million dependent on future performance.
The sale will complete soon after should XLMedia shareholders approve the deal at a meeting on November 7. Sportradar has secured irreversible undertakings from parties representing an estimate of 31.2% of XLMedia shares ahead of this.
It also sold its Europe and Canada sports betting and gaming assets to Gambling.com Group in early 2024. The sales could generate up to $72.5 million for XLMedia together with the North American deal.
XLMedia stated that when it decided to sell its other businesses, the North America segment remained as its only significant asset. The latest sale confirms this position.
As detailed in its 2023 results, the board was confident of long-term potential in the United States. It believes XLMedia’s current scale on a standalone basis could impact its ability to compete in the evolving US market.
After the European business’ sale, the board also said after that the North America business may be considered too small to remain listed. XLMedia will register as an AIM Rule 15 Cash Shell in line with the sale agreement, without trading operations. This is an AIM company that has divested itself of all its trading business.
XLMedia stated that the board, management, and staff have worked diligently to integrate the three acquired entities, forming the North America business. This includes building the media partners business and establishing strong relationships with major U.S. operators. However, the growth of its US revenue streams did not match the original plans of the group.
