XLMedia is set to acquire CBWG in an attempt to expand its outreach within the US sports betting market
One of the globes leading digital performance publishing entities, XLMedia, has recently announced its plans to expand its sports betting outreach into the US market. XLMedia will complete the acquisition of sports gaming and betting business, CBWG Sports, within the coming days with the aim to complete such a deal before December 2020 ends.
It is estimated that the acquisition will include an upfront payment of $12 million in cash whilst also issuing 7,954,546 new XLMedia plc shares with a calculated worth of $3.5 million. Additionally, further add ons based on net revenue performance can potentially amount up to $9.5 million which will be payable over three years.
Furthermore, an application to the Stock exchange in London, for the newly issued shares are to be admitted to trading on AIM. This will come into affect towards the end of the current year.
However, the application is subject to certain criteria, including that sellers and founders agreed not to sell, transfer, or even dispose of their newly acquired shares for a minimum duration of two years from the date of acquisition.
XLMedia CEO Mr Stuart Simms (pictured left) outlined that such an acquisition is extremely attractive to them and especially when considering the current "inflection point" for sports betting within the US market. With this, current statistics indicate that about 60% of the US population will be permitted to access sports betting come the end of 2022.
This could have an even greater impact in the state of New York since a key asset by the name of liteSportsNY.com leads it operations.
Simms continued to state that in order to continue upon the positive momentum of CBWG it is essential that the current team is retained, in particular the founders of such an entity (Kyle Scott and Jason Ziernicki). He also added that such experience and expertise within the sports betting sphere would be essential to further company growth.
About SiGMA's revamped website:
SiGMA Group is excited to announce the launch of its newly revamped website. The website is currently available in 6 languages, English, Russian, French, Mandarin, Portuguese, and Spanish with plans to add another 4 languages over the coming months - namely Thai, Korean, Japanese, and Hindi.