NetPlay TV completes £3.2m digital marketing acquisition
Operator makes good on its pledge to complete a H2 acquisition with deal for Otherside Inc.
NetPlay TV today completed a £3.2m acquisition of digital marketing company Otherside Inc. as the SuperCasino.com and Vernons.com owner looks to diversify its business in a bid to boost revenues.
Under the terms of the deal the AIM-listed operator will pay an initial cash consideration of £2.7m and an additional £500,000 over a 12-month period depending on the performance of its new asset.
Otherside was founded in 2005 and provides digital marketing, display media and affiliate solutions to its customers via its proprietary online marketing platform.
According to figures released today, Otherside recorded revenues of £2.6m and a profit of £600,000 for the 12 months ended 31 May 2015.
“I am delighted to announce the acquisition of Otherside, which will strategically align with our core business and support our digital strategy across the Group’s brand portfolio,” Bjarke Larsen, chief executive officer of NetPlay TV, said.
“NetPlay is in a strong position to pursue appropriate, value-enhancing M&A activity and we are confident that this acquisition further strengthens the Group’s digital reach,” he continued.
Earlier this year NetPlay revealed it had created an entirely new marketing programme after terminating “onerous and inefficient marketing contracts” to boost revenue growth and reduce customer acquisition costs.
The same month Larsen said the operator had “its feelers out” with regards to a potential acquisition it hoped to complete sometime in H2 this year, adding it could look to make a “transformational” deal which “might change the strategic position of the business”.
In April NetPlay TV posted a 31% fall in full-year EBITDA and a 4% drop in revenues and said reiterated that it was focused on boosting growth through “opportunistic M&A” in the UK market.