XLMedia acquires mobile affiliate business for £4.72m
Acquisition of Israel-based Marmar Media is the latest in the digital performance marketing firmâs strategy to grow its mobile business
XLMedia has announced the purchase of a majority stake in web and mobile marketing company Marmar Media in a deal worth up to $7.36m (£4.72m), as the acquisitive performance marketer continues its aggressive expansion.
The acquisition of the Tel Aviv-based Marmar will be be immediately earnings enhancing and the firm said Marmar generated revenues of $11 million and EBITDA of $2.2 million in FY 2014.
XLMedia said the deal would broaden its mobile capabilities, as well as give the firm market and product diversification with Marmar Media focused on verticals outside the gambling sector.
âWe are delighted to announce the acquisition of a majority stake in Marmar Media, which is a highly complementary fit to the Groupâs existing business,â Ory Weihs, XLMediaâs CEO, said.
âWe 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,â Weihs added.
The agreement for 54% of Marmar Media will be comprised of an initial payment of $5.36 million and an additional contingent consideration of up to $2 million based on Marmarâs EBITDA performance during the year ending 31 March 2016.
Marmarâs key management will remain in their position following closing, with acquisition is expected to complete on 1 July 2015.
XL Media has announced a flurry of acquisitions since listing on Londonâs Alternative Investment Market last year.
Last month, the firm acquired a series of mobile-facing websites, with Weihs pledging to âdeliver a seamless mobile experience across our websites and adsâ.
âWe 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,â Weihs said.
âOne 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,â he added.