Perform Group plc announces that it has acquired two related German businesses Spox Media GmbH and mediasports Digital GmbH that will significantly enhance its presence in Germany, the largest digital market in Europe. This acquisition is in line with the stated strategy for growth through acquisitions announced at the time of the IPO. The two businesses are being acquired for initial cash consideration of €3.65 million, with a maximum deferred cash consideration of €12.35 million payable. The deferred consideration will be based on an agreed multiple calculation of the full year reported EBITDA results of the businesses for the years ending 31 December 2012, 2013 and 2014.
The businesses were owned by management and the private equity firm Cresces Sports Media AG. The combined businesses are expected to be accretive to earnings in 2012 and beyond.
Spox, founded in September 2007, owns and operates one of Germany’s leading independent sports websites spox.com. In 2011 spox.com averaged over 1.6 million monthly unique users, 15 million monthly visits and over 70 million monthly page impressions. The site is also available via a range of smartphone and Connected TV applications. In the year to 31 December 2010 Spox reported revenues of €4.1 million and a pre-tax loss of €0.1 million. Gross assets at 31 December 2010 were €1.74 million.
Mediasports, established in February 2010, is the largest independent digital sports advertising sales agency in Germany with a combined audience of over 6 million unique users. It represents the advertising inventory of spox.com and a number of other premium sports websites including comunio.de, Germany’s largest online fantasy football management game, kicktipp.de, Germany’s largest match prediction game, and formel1.de, Germany’s largest independent Formula 1 website. In the period to 31 December 2010 mediasports reported revenues of €2.3 million (€1.8 million were related to spox.com) and a pre-tax loss of €1.2 million, reflecting start up costs. Gross assets at 31 December 2010 were €0.7 million.
Following the completion of the acquisition, Spox and mediasports founder and Managing Director, Manuel Lopez, will become Managing Director of Perform Deutschland.
For the full story click Perform Group