Digital sports media company, Perform Group, has acquired a majority stake in Mackolik Internet, which owns and operates a number of Turkey's leading independent sports websites including mackolik.com and sahadan.com.
Perform is acquiring an initial 51% stake in the business for a cash consideration of 40.8m Turkish Lira (£14.6m) based on an agreed ten times multiple calculation of the full-year audited earning before interest tax depreciation and amortisation (EBITDA) for the year ending December 31st 2012.
This initial payment will be made out of the group's existing cash resources and will be adjusted if reported EBITDA for 2012 is higher or lower than the current forecast of 8.0m. In addition, Perform will acquire the remaining 49% for cash, based on an agreed ten times multiple calculation of the average full-year audited EBITDA for the years ending December 31st 2014 and 2015 weighted 25% and 75% respectively, with maximum additional consideration payable in March 2016 of up to £60.4m.
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The acquisition is being made to boost the firm's presence in Turkey and to grow the company through such purchases.
The two founders of the business will remain as Chief Executive Officer and Chief Operating Officer, respectively, and will retain the remaining 47% of shares in the business, with 2% of the shares will be held by an Istanbul based financial services advisory firm Odin Financial Advisors.
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