XLMedia to sell mobile business to PLYmedia Israel

Digital marketing services provider XLMedia has agreed a deal to sell its Webpals Mobile subsidiary to PLYmedia Israel as part of a strategy to switch focus to its higher-margin publishing activities.

Terms of the deal were not fully disclosed, but XLMedia has confirmed that the Webpals mobile apps marketing arm will repay $1.9m (£1.6m/€1.7m) of inter-company balances to the group upon completion of the transaction.

XLMedia also noted that a final settlement will be made based on the assets and liabilities of Webpals as at completion, following the preparation of completion accounts. XLMedia added that it expects this to be immaterial.

In 2018, Webpals did not contribute anything to group earnings before interest, tax, depreciation and amortisation, while the net value of assets on the XLMedia consolidated balance sheet is nil following impairment charge recorded 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 and personal finance publishing networks, while continuing with complementary media activities, which we believe ideally places the group to deliver sustainable and high margin growth.”

XLMedia plans to use net proceeds from the sale to support its ongoing strategy of developing its publishing assets. This wider initiative will include a discontinuation of certain other media activities in order to focus its efforts on higher-margin publishing activities.

PLYmedia Israel, the new owner of Webpals, is a business that is active in both the ad-tech and online marketing industries.