Online gaming marketing services provider XLMedia has struck a deal to acquire a majority stake in Marmar Media, a performance media company for web and mobile.
Under the agreement, XLMedia will pay a consideration of up to $7.4 million (€6.5 million) in cash for a 54% stake in Marmar Media.
Specialising in performance-based marketing for a number of verticals, Marmar Media was founded in 2011 and boasts a 16-strong workforce at its Tel Aviv headquarters.
Marmar Media, which will now be integrated into XLMedia, posted revenue of $11 million in the 2014 financial year, with more than 30% of this total having been generated from its mobile business.
XLMedia now plans to broaden the group’s mobile capabilities in order to further strengthen its service offering, in addition to diversifying its current products and entering new markets.
Ory Weihs, chief executive officer of XLMedia, said: “One of the reasons for becoming a public company was to enable the group to grow through acquisitions and act as a consolidator in what we believe is a highly fragmented market.
“We believe this transaction is another good example of such an opportunity to add another performance media company to the group, delivering value to our shareholders and scale to our business.
“We have been investing significantly in both our infrastructure and technology over the last 12 months, and believe we are now beginning to see the real benefits of this investment delivering both scale and profit growth for the group.
“Marmar complements the group’s offering, bringing additional know how and mobile understanding in additional markets and products.”
source : www.igamingbusiness.com
