XLMedia sells North American assets to Sportradar for $30 million

Sudhanshu Ranjan October 23, 2024

XLMedia Plc has announced a deal to sell its North American business to Sportradar AG for a substantial $30 million in cash. The deal comprises $20 million upfront, with an additional $10 million performance-based incentive. With the rapidly evolving U.S. market for sports media and betting, this transaction is seen as a strategic shift by XLMedia to reward its investors while streamlining its business operations.

Breakdown of the deal

Sportradar’s offer to acquire XLMedia’s North American assets is structured as a $20 million cash payment, with an additional $10 million contingent on performance benchmarks. This incentive will be payable in April 2025, contingent on meeting certain agreed-upon targets. The offer remains conditional until it receives shareholder approval at a general meeting scheduled for 7 November 2024. Despite the formalities, it seems the deal will likely go through, as shareholders owning 31 percent of XLMedia’s share capital have already committed to the sale.

Chairman Marcus Rich has indicated that shareholders can expect an initial distribution before the end of the year, marking a successful conclusion to a challenging few years for the company.

Marcus Rich (pictured above), Chairman of XLMedia, stated, “In our ongoing commitment to maximise shareholder value, following the Europe Disposal, the Board is pleased to have reached an agreement to sell the North American Business to Sportradar, pending shareholder approval. We anticipate an initial distribution from the net proceeds to shareholders before the year’s end.”

Why XLMedia is selling its U.S. business

By selling its North American assets, XLMedia aims to reward its investors with a cash distribution and avoid the challenges of running a standalone business in an evolving market. With cash proceeds from this deal and previous asset sales in Europe and Canada, XLMedia has raised $72.5 million this year alone.

While XLMedia had ambitious plans for the U.S., including multiple acquisitions like CBWG Sports and Sports Betting Dime, the reality of operating in the U.S. sports betting market proved more challenging than anticipated. These acquisitions totalled over $62 million, but XLMedia found itself constrained financially due to high valuations and the competitive nature of the U.S. market.

For Sportradar, this acquisition is a strategic win. Sportradar is already a leading provider of sports data and technology, and acquiring XLMedia’s North American assets will further solidify its position in the U.S. market. The deal aligns with Sportradar’s goal of surpassing the $1.08 billion revenue mark and becoming the most valuable company in sports technology.

In addition to growing its media and affiliate marketing capabilities, Sportradar is expected to use these new assets to expand its marketing services, creating synergies between its data intelligence solutions and newly acquired media platforms.