XLMedia Agrees to Sell North American Business to Sportradar for $30m

XLMedia Plc has reached a ‘conditional agreement’ to sell its North American business to Sportradar AG for $30m. The deal includes a $20m cash offer and a $10m performance incentive, payable in April 2025, for the remaining North American media assets.

Shareholder approval is required at a General Meeting scheduled for 7 November 2024, with support already secured from shareholders holding 31% of the company’s ordinary shares.

Following the sale, XLMedia plans to wind down operations, registering as an AIM Rule 15 Cash Shell company with no active trading. The firm’s North American revenues in 2023 were $27.5m, with an adjusted EBITDA of $5.5m, valuing the assets at 5.5x EBITDA.

The sale aligns with XLMedia’s goal to reward investors, as its share price currently undervalues the business. Including this deal, the company has generated $72.5m from asset sales in 2024, having previously sold European and Canadian media assets to Gambling.com Group for $42m in March.

Chairman Marcus Rich stated:

“In our ongoing commitment to maximise shareholder value, following the Europe Disposal, the Board is pleased to have reached an agreement to sell the North American Business to Sportradar, pending shareholder approval. We anticipate an initial distribution from the net proceeds to shareholders before the year’s end.”

The sale was driven by XLMedia’s belief that its standalone North American business was too small to remain competitive in the evolving US market. The company also acknowledged that US revenue growth had not met expectations despite strategic efforts.

XLMedia entered the US market with the acquisition of CBWG Sports in 2020, followed by Sports Betting Dime and Saturday Football Inc in 2021. However, financing these acquisitions at high market values constrained the company’s US operations.

“The Board considers that Sportradar’s offer represents a fair net present value for the standalone North America Business’s future revenue and profitability,” XLMedia concluded.

Sportradar continues to trade confidently, targeting €1bn in revenue and positioning itself as the most highly valued company in sports technology and betting data as it approaches its NASDAQ IPO. Its strategic initiatives have enhanced its sports data and marketing services for iGaming and sports betting clients.