Friday June 29,2012 : PERFORM ACQUIRES TURKISH DIGITAL SPORTS COMPANY
Upbeat on trading update promising strong revenue and EBITDA growth
Perform Group said today (Friday) it had acquired a 51 percent stake in Turkish digital sports company Mackolik Internet Hizmetleri Ticaret A.S. (Mackolik) for a cash consideration of TRY 40.8 million (GBP 14.6 million).
The consideration was based on an agreed ten times multiple calculation of the full year audited EBITDA results of the business for the year ending 31 December 2012.
Perform will acquire the remaining 49 percent for cash, based on an agreed ten times multiple calculation of the average full year audited EBITDA results of the business for the years ending 31 December 2014 and 2015 weighted 25 percent and 75 percent respectively, with maximum additional consideration payable in March 2016 of up to GBP 60.4 million.
Mackolik is the market leader in digital sports media in Turkey and operates ten sports websites which include the country's top two most visited sports sites – mackolik.com and sahadan.com said Perform.
Its websites contain a mix of original sports editorial content, live scores and social features including forums and moderated chat. The sites are available in desktop formats and via a range of smartphones and tablet platforms.
The business has been acquired from the two founders and three private investors. Following the completion of the acquisition, Mackolik's founders Erdem Yurdanur and Tarkan Onar, will remain as chief executive officer and chief operating officer respectively and will retain the remaining 47 percent of shares in the business, with the three private investors exiting.
Oliver Slipper, joint chief executive officer of Perform commented: "We continue to execute our strategy of augmenting our strong organic growth with selective acquisitions and are delighted to have announced the acquisition of Mackolik.
"Turkey is a hugely exciting opportunity for Perform, given the rapid growth in online advertising and internet usage and its young and growing population. Within this important geography, Mackolik is the clear market leader with a fantastic portfolio of websites and content."
Erdem Yurdanur, chief executive officer of Mackolik, commented: "We believe that working with Perform will enable us to accelerate Mackolik's development and take full advantage of the numerous opportunities present in our market, particularly in relation to sports video, editorial and data content."
In related news, Perform said it remains on track to deliver strong revenue and EBITDA growth for the full year in line with Board expectations.