XLMedia to acquire Sports Betting Dime in $26.0m deal

Digital publisher XLMedia said on Thursday that it had agreed to acquire US outfit Sports Betting Dime for roughly $26.0m.

In order to finance the acquisition, XLMedia will look to raise up £23.0m by means of a placing of 50.0m new ordinary shares, a direct subscription with the company and an open offer of £3.0m to qualifying shareholders.

The AIM-listed group highlighted that the addition of SBD followed the acquisition of the sports gaming and sports betting business of CBWG Sports back in December 2020 and strengthens XL Media's position in the fast-growing US market for sports gaming.

Chief executive Stuart Simms said: "We believe the combination of Sports Betting Dime and CBWG provides the group with immediate scale and broad market reach at a time when US sports betting is experiencing significant growth momentum as additional states regulate and open up to legalised sports betting."

XLMedia also said it now expects to deliver revenues of no less than $54.5m and adjusted underlying earnings of about $11.5m in its full-year results at the end of April, as second-half revenues recovered following the easing of lockdown measures and the return of professional sports.

As of 1120 GMT, XLMedia shares had slumped 9.44% to 48.45p.