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XLMedia raises $33.5m to fund Sports Betting Dime deal


Affiliate business XLMedia has raised £24.0m (€28.1m/$33.5m) under a placing and subscription to help fund its acquisition of US-focused sportsbook review website Sports Betting Dime.

Yesterday (18 March), XLMedia agreed to buy Sports Betting Dime for £26.0m, in a deal it said would provide the business with a US affiliate sports betting brand and strengthen its presence in the country’s legal wagering market.

XLMedia said that it would fund the majority of the purchase through a series of share offerings, including a core placement of 58,727,398 shares.

These shares were placed at a price of 40 pence each, with both new and existing investors taking part in the oversubscribed offering. The placement conditionally raised gross proceeds of £24.0m, though after also taking into account expenses, net proceeds will be approximately £22.9m.

In addition, certain XLMedia directors and employees agreed to subscribe to 1,272,602 in shares at an issue price of 40 pence each, leading to a further £509,041 in funding

“It is extremely pleasing to see the level of support received from both new and existing investors as part of this heavily oversubscribed fundraising,” XLMedia chief executive Stuart Simms said.

“The level of demand for the placing reflects confidence in XLMedia’s strategy and growth potential in the US sports betting market.”

XLMedia will pay an initial $11.0m up front to acquire Sports Betting Dime, together with up to $500,000 as a reimbursement of the website’s operating expenses per month since the beginning of the current year.

A further $10.0m will be payable on the first anniversary of the deal, and then the final $3.7m after 18 months.