Acroud AB has announced its intention to make a €5.5m acquisition of an undisclosed business within the affiliate and media space in its Q2 2022 report.
Although it did not specify which company it was aiming to acquire, Acroud estimates the potential acquisition would contribute €9m to the company’s revenues and €4m to the business’s EBITDA annually.
The business noted that this would have the effect of increasing Acroud’s earnings per share.
Acroud said the deal would also help it hit other financial goals by improving profitability, increasing cash flow and reducing Acroud’s leverage going forward.
It added that if the acquisition materialises, Acroud will invest approximately €1m in shares and €4.5m in cash.
Next Steps
Robert Andersson, company CEO and president, outlined the acquisition plans.
“To complement this strong organic growth, we are currently considering an accretive opportunity to acquire 60% shareholding in an affiliation and media company, comprising of affiliation assets and technology within the igaming market.”
Andersson continued by expanding on the deal’s potential synergies with the current business model.
“The transaction will further solidify our efforts to develop a low-risk, high-growth business based on intelligent solutions, as the acquired assets leverage intelligent media buying capabilities (IMBC) rather than relying on SEO algorithms.”
“I am happy to share that the M&A process is progressing well. The transaction is subject to final board approval and the parties entering into a definitive purchase agreement.”
Acroud has made a number of acquisitions of the last few years, notably with PMG Group in 2021, in that case purchasing their news and direct comparison operations as well as its igaming B2B division.
Q2 growth
In financial terms the business saw growth across the board, with year-on-year revenues increasing from €6.2m to €7.2m for the three-month period ending June 30 – a 16.1% increase.
Earnings before interest, tax, depreciation and amortisation (EBITDA) in the three-month period, adjusted to ensure comparability, was €1.8m compared to €1.5m the previous year, a 20.1% increase.
Acroud AB have stated their goal was to have their total EBITDA for the year fall between €8m and €10m.
