Digital marketing services provider XLMedia has expanded its iGaming-focused solutions with a $19 million buyout of ExciteAd Digital Marketing (EDM).
The newly acquired firm is based in Israel but its key focus is in the US market. XLMedia CEO Ory Weihs stated after the deal was struck that having EDM on board would allow his firm to strengthen its reach in the US and achieve progress in the mobile and social gaming arenas.
With both marketing service providers regarded as advocates of ‘pay on performance’ models such as cost per installation, the move has been touted as “highly complementary” to XLMedia’s existing operation.
XL gets large on social
Proving ROI is at the forefront of XLMedia’s mission statement as the company’s three main services all run on performance-based models. Through content, media buying and affiliate offerings, the firm helps drive traffic and installations for games developers through partnerships with over 2,000 third-party websites.
EDM operates in a similar fashion but specialises on boosting user acquisition for companies developing mobile and social titles.
London-based XLMedia is already purchasing ad space across mobile and social media but EDM’s focus on obtaining clients which create games for use on these two platforms should aid the company’s future progress.
EDM’s revenue in the year ending June 2014 topped $12.8 million, resulting in a pre-tax profit of $3.0 million. XLMedia was listed on London’s Alternative Investment Market in March and Weihs claimed its purchase of EDM represented the company’s largest acquisition since the IPO took place.
“Since listing, we have been working hard to execute such deals and are therefore excited to conclude the acquisition of EDM, a global leader in the social and gaming marketing arena,” he announced.
The deal is thought to be made up of $12 million in cash and two additional payments of $7 million subject to EDM meeting certain financial targets. Despite the hefty price tag, Weihs believes the deal could have a hugely positive impact on XLMedia’s own balance sheet.
“EDM represents a highly complementary fit for our business, is immediately earnings enhancing, strengthens our reach in the US, delivers diversification into social gaming and extends our current gambling expertise and customer base,” he commented.
Early signs have only backed up Weihs’ foresight as shares in XLMedia were up 11.67% at the end of trading on Monday.