XLMedia completes $19m social marketing acquisition
Egaming marketing firm expands presence into social and mobile gaming space with ExciteAd Digital Marketing purchase
AIM-listed XLMedia has made its first push into the social gaming sector after acquiring social and mobile gaming marketing firm ExciteAd Digital Marketing (EDM) for up to US$19m (£11.4m).
The deal is the egaming marketing company’s largest transaction to-date and comes just two weeks after the company announced its acquisition of an unnamed sports betting affiliate for $6.72m.
Israel-based EDM provides targeted advertising for the social gaming industry and, according to XLMedia, recorded revenues of $12.8m in the 12 months ended 30 June 2014.
XLMedia was floated on London’s Alternative Investment Market (AIM) in March in a move which CEO Ory Weihs said had helped the company “act as a consolidator” in saturated markets such as social gaming.
“Since listing, we have been working hard to execute such deals and are therefore excited to conclude the acquisition of EDM,” Weihs said.
“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 currently gambling expertise and customer base,” he added.
XLMedia was founded in 2003 by technology entrepreneur and professional poker player Weihs before merging with online marketing firms Webpals and Reef Media, which operate as part of the XLMedia group.
The firm’s share price was up 8% to 64.75p on the AIM at the time of writing.