Digital performance marketing services provider XLMedia plc (AIM: XLM) has acquired ExciteAd Digital Marketing Ltd (EDM) for up to $19 million. XLMedia will pay $12 million in cash immediately and additional payments of up to $7 million based on EDM’s EBITDA performance during the first and second years after July 1 2014. This is Israeli company XLMedia's fifth acquisition and by far its largest - the previous four acquisitions were for just $9.4 million combined.
XLMedia was created through the merger of two companies: WebPals, founded by Yaron Nahari and Assaf Levy in 2007; and Traffic, founded by Ory Weihs. Weihs is XLMedia's CEO. In March, XLMedia raised £42 million on London's AIM.
EDM, also an Israeli company, which trades under the name "DAU-UP" specializes in social and mobile advertising specifically targeted at "user acquisition" for social gaming applications. EDM's principal geographical market is the US, in addition to other English and German speaking markets. EDM provides marketing services primarily to game developers in social and mobile platforms for either a performance based fee, such as CPI or cost per installation, or a management fee based on marketing spend.
EDM's founder and CEO Idan Nizri, who owns 71.2% of the company will earn about NIS 50 million. He is just 33 years old.
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 current gambling expertise and customer base."
Published by Globes [online], Israel business news - www.globes-online.com - on September 1, 2014
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