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XLMedia (LON: XLM) shares are rising after the company announced the acquisition of the business and assets of Saturday Football Inc.
Saturday Football is an online publisher of college football news and operates two college football media sites, saturdaydownsouth.com and saturdaytradition.com.
XLMedia will pay a total consideration of $23.0 million cash (around £16.8 million) plus $1.0 million (approximately £0.7 million) in long-term incentive shares. An upfront consideration of $11.0 million in cash plus an additional $12.0 million, payable over three years. The acquisition will be funded from XLMedia's existing cash reserves.
The AIM-quoted company said the deal progresses its strategy to increase exposure to high growth regulated markets, particularly in the US, and significantly strengthens its position in US sports betting.
Stuart Simms, CEO of XLMedia, commented: “We are delighted to be acquiring Saturday Football Inc., cementing an already extremely productive working relationship. Over the last twelve months we have got to know the business very well and have been hugely impressed with their team, their systems and most importantly their market reach.
“This transaction provides additional operation depth and reach to our sports footprint which we believe is fast becoming a significant growth driver for our business.
“With the forthcoming US College Football season about to commence, the timing of this transaction couldn't be better with our growing US presence ideally positioned to further support the team at Saturday Football Inc.“
XLMedia shares are currently trading at 63p, up 1.61%.
XLMedia shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are XLM shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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