Online gaming marketing services provider XLMedia has completed the acquisition of social and mobile gaming marketing firm ExciteAd Digital Marketing (EDM) in a deal worth up to $19 million (€14.5 million) in cash and shares.
Trading as DAU-UP, EDM specialises in social media and mobile advertising specifically targeted at user acquisition for social gaming applications in the US and additional English- and German-speaking markets.
XLMedia said that the acquisition, which is in line with its initial public offering that was set out in March of this year, will expand and diversify its activities into complementary areas.
This will include enhanced social and mobile expertise, a new customer base, an expanded geographic reach, strong analytic systems and overall growth in an expanding market.
The terms of the deal state that XLMedia will pay $12 million in cash immediately with two additional payments of up to an aggregate of $7 million payable based on EDM’s earnings before interest, tax, depreciation and amortisation performance during the first two years.
Ory Weihs, chief executive officer of XLMedia, said: “One of the main reasons behind our IPO was to enable the group to act as a consolidator in highly fragmented markets.
“Since listing, we have been working hard to execute such deals and are therefore excited to conclude the acquisition of EDM, a global leader in the social and gaming marketing arena.
“EDM represents a highly complementary fit for our business, is immediately earnings enhancing, strengthens our reach in the US, delivers diversification into social gaming and extends our current gambling expertise and customer base.”
source : www.igamingbusiness.com
