XLMedia is a leading digital performance marketing services company and has just announced that they are entering into an agreement with Marmar Media Ltd to acquire a 54% stake in the company. Marmar is also a performance media company, focused on web and mobile, which makes the move quite logical for both parties. Analysts believe that the move will enhance the earnings of XLMedia and help to compliment the company’s existing media division.
Marmar is a specialty marketing company that is focused primarily on apps, software entertainment and gambling niches. With 30% of their revenue being generated from mobile devices, they are hoping to grow that number to over 50% this year.
XLMedia will benefit from Marmar’s mobile capabilities, where they have been lacking up till now. They will also help to diversify their focus, which has been on ecommerce and software products up until now.
The 54% ownership stake is worth $7.36 million in cash ($5.36 million up front and the remaining two million based on performance). The deal will take effect on July 1st, 2015 assuming nothing changes between now and then.
CEO of XLMedia, Ory Weihs, said, “We are delighted to announce the acquisition of a majority stake in Marmar media, which is a highly complementary fit to the Group’s existing business. 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.”
