Sportradar Buys Up XLMedia’s North American Operations

Sportradar has entered into a conditional agreement to purchase the North American footprint of XLMedia, a U.K.-based sports digital media company.

The price is $20 million up front, and up to an additional $10 million based on performance up to April 2025, according to a regulatory note on XLMedia’s website.

XLMedia owns several notable digital media properties, many of them operating under the affiliate gaming model. In the college football space, it operates Saturday Down South and Saturday Tradition, which focus on coverage of southeastern and midwestern college football, respectively. The company also runs Sports Betting Dime, a site dedicated to sports gambling information and analysis, as well as Honey Monkey Pineapple, another gambling-themed publication. Additionally, XLMedia has a presence in major sports markets with Crossing Broad, which covers Philadelphia sports, and Elite Sports NY, which focuses on New York sports teams and events.

The sale is contingent on shareholder approval at a General Meeting scheduled for Nov. 7. If approved, the transaction is expected to conclude shortly after.

Once the sale is complete, XLMedia will become an AIM Rule 15 Cash Shell, focusing solely on distributing proceeds from this North America sale and the previously announced sale of its European and Canadian assets to shareholders.

For the year ending Dec. 31, 2023, the North America Business generated revenue of $27.5 million and an estimated adjusted EBITDA of $5.5 million. 

Combining the proceeds from both the North America and Europe sales, including all potential earnout payments, could generate up to $72.5 million in cash for XLMedia before costs and liabilities are deducted.

Sportradar is a sports technology company whose products include sports data, betting odds, and live-streaming solutions.

Paying out

“In an ongoing commitment to maximize shareholder value, following the Europe Disposal, the Board is pleased to have reached an agreement to sell the North America Business to Sportradar pending shareholder approval,” Marcus Rich, chairman of XLMedia, said in the note. “We anticipate an initial distribution from the net proceeds to shareholders before year end.”

The street loved the news, with shares of XLMedia up over 32% in midday trading in London.

XLMedia’s board of directors has been actively seeking ways to increase shareholder value. On Dec. 15, 2023, they announced they were exploring potential asset sales and had begun early talks with possible buyers.

The board recognized that the company’s individual businesses weren’t being fully valued in its share price. It concluded that strategically selling certain assets would best benefit shareholders. After two smaller sales, the company announced on March 21 that it was selling its European operations for up to $42.5 million.

Following this European sale, XLMedia’s North American business became its only significant asset. 

In valuing the North American business, the board considered its future revenue, profitability, and cash flow, as well as the value of its technology, relationships, and brands to a potential buyer.

The board believes that Sportradar’s offer represents a fair value for the standalone North American business, considering its future revenue and profit potential.