Thursday, September 4, 2014

XLMedia Acquires Israeli Startup ExciteAd Digital Marketing for $19m

XLMedia PLC said it has acquired social and mobile gaming marketing company ExciteAd Digital Marketing Ltd for up to $19 million in cash and shares. The acquisition is expected to add to earnings immediately. XLMedia said the acquisition was "highly complimentary" to its Media division, and cited benefits of the acquisition including social and mobile expertise, revenue streams from regulated products and markets, a new customer base and expanded geographic reach.

This numbers Israeli company XLMedia’s fifth and largest acquisition, with previous acquisitions totaling $9.4 million combined. ExciteAd, also known as DAU-UP, was founded in 2011 by 33-year-old CEO Idan Nizri, posted pretax profit, excluding share based payments, of $3 million in the year to end-June, on revenue of $12.8 million.

XLMedia will pay $12 million in cash immediately, with two additional payments of up to $7 million based on ExciteAd's earnings before interest, tax, depreciation and amortiZation in the first and second years after July 1. Of this additional payment, 71% may be satisfied through the issue of new shares in XLMedia.


Source: MorningStar

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