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Gambling.com Group has completed the previously announced purchase of Freebets.com and other assets from XLMedia.

The deal saw XLMedia offload its Canadian and European sports media assets to Gambling.com Group.

Gambling.com will pay between $37.5m and $42.5m under the deal, depending on revenue performance of the acquired assets during 2024.

Gambling.com Group predicts the purchase will add approximately $10m in revenue and $5m in adjusted EBITDA to the company’s finances.

“While expansion of gambling in the US grabs all the headlines these days, many of the industry’s most attractive markets remain in Europe, the historical home of the industry,” said Gambling.com Group CEO Charles Gillespie (pictured).

“I expect this acquisition to fundamentally change the balance of power within the European online gambling affiliate market and provide Gambling.com Group with a clear path to drive further growth in both our existing European markets as well as new ones.

“As part of the transaction, we are gaining a number of new colleagues in the region. I look forward to sharing our leading technology platform and high performance culture with our new team members.”

XLMedia doubles down on US strategy

XLMedia said it intends to use the net proceeds from the sale to pay a $4m M&A charge, provide working capital for its North American business and settle outstanding tax issues, as well as reward shareholders.

The affiliate outlined its strategy post-sale, which will see it double down on the rapidly expanding North American market.

It said it will aim to expand its footprint, deepen audience relationships and diversify revenue streams, with the goal of developing a more predictable and stable income stream.

Developing its iGaming operations will also be a priority in the coming years.

“XLMedia’s board will continue to execute this strategy whilst also evaluating ways to maximise shareholder value,” the business said.

The board had previously confirmed it was in talks to sell the entire business.

However, given the company’s low share price, the sale of selected assets was instead considered the best way to maximise shareholder value.

The affiliate received a higher consideration for the sale of its assets than the company’s total market cap, which currently stands at £31.4m.

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