XLMedia offloads mobile business to PLYmedia Israel
Published 9th August 2019
Under the arrangement, the Webpals mobile apps marketing division will repay $1.9m (£1.6m/€1.7m) of inter-company balances to XLMedia upon completion of the sale.
A final settlement will also be made based on the assets and liabilities of Webpals as at completion, following the preparation of completion accounts.
XLMedia said that the sale forms part of its strategy to focus on its higher margin publishing activities. Net proceeds from the sale will go towards supporting this effort.
In 2018, Webpals did not contribute anything to XLMedia’s earnings before interest, tax, depreciation and amortisation.
Net value of assets on the XLMedia consolidated balance sheet is nil following impairment charge in 2018.
“The sale of Webpals marks an important step for our business as we focus our attention on our core publishing activities,” XLMedia chief executive, Ory Weihs, said.
“We remain committed to growing our Gambling & Personal Finance publishing networks, while continuing with complementary media activities, which we believe ideally places the Group to deliver sustainable and high margin growth.”