Gambling.com To Buy XLMedia’s European and Canadian Assets for $42M

Article by : Erik Gibbs Mar 25, 2024

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Gambling.com Group is expanding its gaming affiliate portfolio. It has reportedly entered into an agreement to purchase XLMedia’s European and Canadian sports betting and gaming assets in a transaction valued at up to $42.5 million.

This includes renowned affiliate gaming sites such as Freebets.com and WhichBingo.co.uk. The proceeds from the sale will cover various expenses, including asset transition costs and settling tax provisions, while also boosting working capital and returning cash to shareholders.

Marcus Rich, XLMedia’s Chair, sees the sale as a significant milestone, emphasizing its positive impact on shareholder value. Looking ahead, XLMedia remains optimistic about its growth potential, especially in regions yet to legalize online sports betting.

Charles Gillespie, CEO and co-founder of Gambling.com, views this move as a significant opportunity to enhance its brand portfolio and augment existing assets across key markets. By integrating these new assets into its technology platform, Gambling.com intends to drive further growth and deliver substantial value to shareholders.

In its recent financial forecast, Gambling.com Group anticipated a notable boost from the acquisition, with projected revenue of approximately $10 million and incremental Adjusted EBITDA of around $5 million over the last nine months of 2024.

Reflecting on its performance in 2023, Gambling.com Group witnessed remarkable growth, with revenue surging by 42.1% to $108.7 million year-on-year. This growth trajectory was further underscored by significant increases in adjusted EBITDA and net profit. Notably, the fourth quarter of 2023 set a new record, with revenue reaching an all-time high of $32.5 million, marking an impressive 52.6% increase.

In 2023, the digital marketing services provider experienced significant growth driven by strategic acquisitions and expansions, notably entering the Ohio and Massachusetts markets.

The acquisition of Casinos.com further diversified its portfolio alongside established brands like Gambling.com and Bookies.com. With a presence across 50 websites in 15 national markets, the group solidified its leadership in digital marketing.

Gillespie highlighted remarkable performance in North America, with a staggering 103% revenue increase in the fourth quarter and a notable 69% increase for the full year. Net income also saw a significant increase, reaching $18.3 million for the year.

With optimistic revenue and Adjusted EBITDA guidance for 2024, Gambling.com Group anticipates continued success and expansion in the upcoming year, supported by its solid financial foundation and strategic vision.