Digital performance marketing company XLMedia (AIM: XLM) announced the acquisition of Greedyrates on Tuesday, pushing shares up nearly 5 percent on the London market.
Greedyrates is one of Canada’s leading credit card comparison websites, and will be XLMedia’s first major asset in the finance sector. The group are buying Greedyrates for a total consideration of $9.3 million, and will significantly enhance the XLMedia’s presence in North America. The deal is likely to be completed during the first quarter of 2017 and is expected to enhance the group’s earnings.
Ory Weihs, Chief Executive Officer of XLMedia, commented:
“We are delighted to announce the acquisition of Greedyrates, our first significant publishing asset in the financial services sector. As a leading credit card comparison site Greedyrates is a household name in Canada and, with its existing footprint and brand recognition, it represents an excellent opportunity for XLMedia to increase its North American presence and establish a foothold in the financial services market.
“There is significant opportunity within the financial services sector and we believe this acquisition will be the catalyst to our operations in the sector, which could be a significant future growth engine for the Group.”
XLMedia added an update on trading in its statement, saying that it “continues to trade in line with expectations and expects to provide a more comprehensive trading update for the full year ended 31 December 2016 during January 2017”.
Shares in XLMedia (LON:XLM) are currently up 4.84 percent at 97.50 (0953GMT).
XLMedia operates across the media sector, including media buying, publishing and social media presence. The company also own more than 2,000 content-rich websites in 18 languages. These are informational sites.