XLMedia PLC Acquisition (1238T)
03 January 2017 - 6:00PM
UK Regulatory
TIDMXLM
RNS Number : 1238T
XLMedia PLC
03 January 2017
For immediate release 3 January 2017
XLMedia PLC
("XLMedia" or "the Group" or "the Company")
Acquisition of leading Canadian Credit Card comparison
website
Key strategic publishing acquisition in the financial services
sector
XLMedia (AIM: XLM), a leading provider of digital performance
marketing, is pleased to announce the acquisition of Greedyrates.ca
("Greedyrates"), one of Canada's leading credit card comparison
websites, for a total consideration of US$9.3 million. The
consideration is payable in cash. The acquisition is expected to
complete during the first quarter of 2017 and is expected to be
earnings enhancing following completion.
Financial services is a key growth vertical for the Group and
the acquisition of Greedyrates is XLMedia's first significant
publishing asset in this sector. The acquisition will significantly
enhance the Company's presence in North America and is a further
demonstration of XLMedia's ability to diversify its revenue
streams.
The Company will integrate Greedyrates into its proprietary
Palcon infrastructure to enable improved day to day maintenance and
performance and intends to further develop XLMedia's offering and
geographical reach within financial services. The acquisition
agreement includes additional domains which the Company also plans
to use and develop.
The credit card and payment card markets continue to grow, with
projected CAGR of purchase transactions by credit cards(1) of 4.52%
in Canada and 6.36% in the US for 2014 to 2024. The Board believes
this anticipated growth market offers significant opportunity for
future growth and expansion.
Ory Weihs, Chief Executive Officer of XLMedia, commented:
"We are delighted to announce the acquisition of Greedyrates,
our first significant publishing asset in the financial services
sector. As a leading credit card comparison site Greedyrates is a
household name in Canada and, with its existing footprint and brand
recognition, it represents an excellent opportunity for XLMedia to
increase its North American presence and establish a foothold in
the financial services market.
"There is significant opportunity within the financial services
sector and we believe this acquisition will be the catalyst to our
operations in the sector, which could be a significant future
growth engine for the Group."
XLMedia continues to trade in line with expectations and expects
to provide a more comprehensive trading update for the full year
ended 31 December 2016 during January 2017.
(1) The Nielson report 2016. Purchase transactions are payments
of goods and services generated by general purpose payment
cards
For further information, please contact:
XLMedia plc Ory Weihs www.xlmedia.com Tel: 020 8817 5283
Vigo Communications Jeremy Garcia Tel: 020 7830 9707
/ Fiona Henson www.vigocomms.com
Cenkos Securities plc (Nomad Tel: 020 7397 8900
and Joint Broker) Ivonne Cantu
/ Camilla Hume www.cenkos.com
Berenberg (Joint Broker) Chris Tel: 020 3207 7800
Bowman / Mark Whitmore / Amritha
Murali www.berenberg.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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