Perform, the digital media firm specialising in sports content, has acquired two related German businesses: Spox Media and mediasports Digital.
The two businesses are being acquired for €3.65m up front, with a maximum deferred payment of €12.35m.
The businesses were owned by management and the private equity firm Cresces Sports Media AG.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Spox, founded in September 2007, owns one of Germany's leading independent sports websites spox.com. In 2011, spox.com averaged over 1.6 million monthly unique users. In the year to 31 December 2010 Spox reported revenues of €4.1m and a pre-tax loss of €0.1m.
Mediasports, established in February 2010, is, according to Perform, "the largest independent digital sports advertising sales agency in Germany."
It represents the advertising inventory of spox.com and a number of other premium sports websites including comunio.de, Germany's largest online fantasy football game.
In the period to 31 December 2010, mediasports reported revenues of €2.3m (€1.8 million were related to spox.com) and a pre-tax loss of €1.2m , reflecting start up costs.
Following completion, Spox and mediasports founder, Manuel Lopez, will become Managing Director of Perform Deutschland.
Oliver Slipper, joint Chief Executive of Perform commented: "We have set out a growth strategy focused on augmenting Perform's strong organic growth with selective acquisitions including 'local champions' and today's announcement is an excellent example of us executing this strategy."
Manuel Lopez, Managing Director of Perform Deutschland, said: "This combination creates a true market leader in the German digital sports sector and provides the opportunity to capitalise on the numerous commercial opportunities in this exciting market."
Since it floated this year Perform has lost 6% of its value. The shares were down 4.4p at 205.6p in early trading.
BS
