In its second quarter 2022 report, Acroud AB announced its intention to acquire privately held businesses within the affiliate and media space for €5.5 million.
Although the companies it seeks to acquire have not been identified, Acroud estimates that the potential acquisition will contribute €9 million annually to the company’s revenues and €4 million to the business’s EBITDA.
The business noted that this had the effect of increasing Acroud’s earnings per share.
Acroud said the transaction will also help it meet other financial goals by improving profitability, increasing cash flow and reducing Acroud’s future leverage.
He added that Acroud would invest approximately €1 million in equity and €4.5 million in cash if the acquisition goes through.
next step
The company’s CEO and president, Robert Andersson, outlined the acquisition plan.
“To complement this strong organic growth, we are now increasing the opportunity to acquire 60% stakes in affiliate and media companies, which consist of affiliate assets and technology within the gaming marketplace. I have.”
Andersson continued by expanding the potential synergies of the deal with its current business model.
“This transaction leverages our commitment to developing a low-risk, high-growth business based on intelligent solutions, as the acquired assets leverage Intelligent Media Buying Capabilities (IMBC) rather than relying on SEO algorithms. It will make it stronger.”
“I am pleased to report that the M&A process is proceeding smoothly. The transaction is subject to final Board approval and the execution of a definitive purchase agreement by both parties.”
Acroud has made a number of acquisitions in recent years, especially with PMG Group in 2021, in this case its news and head-to-head comparison business, as well as its Igaming B2B division.
second quarter growth
On the financial side, the business grew overall with an increase of 16.1% from €6.2 million to €7.2 million year-on-year in the three months to 30 June.
Three-month earnings before interest, tax, depreciation and amortization (EBITDA), adjusted for comparability, was €1.8 million, up 20.1% compared to €1.5 million in the previous year .
Acroud AB has said it aims to achieve a total annual EBITDA of between €8 million and €10 million.
