XL Media Acquires Blue Claw Media in Cash

XL Media Acquires Blue Claw Media in Cash

XL Media, a leading global digital performance publisher has continued the expansion spree. It has now acquired Leeds, UK-based marketing agency, Blue Claw Media in a $2.5 million (£1.8 million), all-cash deal.

History of the acquisition

The two companies started their partnership in December 2020. The acquisition comes more than a year and a half of collaboration between the two organizations. Blue Claw, a specialist in pay per click (PPC) and search engine optimization (SEO) proved its worth to the association through the implementation of new processes and systems. This improves traffic performance for a number of websites owned and by XL Media. The agency has also developed a substantial number of systems and proprietary tools that proved its track record as to delivery.

Price and manner of acquisition

The acquisition price is to be paid in three equal payments. The first payment of £0.6 million ($0.82 million) will be closed when the transaction is closed. The second payment will happen after the completion of a year after the closure of the transaction. The third payment is a contingent payment that will only be made when certain targets are achieved in terms of performance. The transaction is being funded by XL Media with the expectation that the entire funding will be done with the first-year earnings in cash.

Impact of the transaction

The acquiring party, XL Media was founded in 2007 in order to gain a UK hub for the sports business in Europe. The experience that Blue Claw brings in the verticals in which the group operates is significant. The talent and the automated workflow capabilities are expected to generate SEO as well as digital PR practices to the wider portfolio of the group. Blue Claw will continue its operations as an independent business throughout 2021 and will take charge of  XL Media’s sports business in Europe. As of 2022, it is expected to become a shared service function for the owned assets of the group as well as the agency partners of the group.

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