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Perform acquires Turkish digital sports media company

Indiantelevision.com Team

(30 June 2012 2:00 pm)

MUMBAI: Digital sports media company Perform Group has acquired a majority stake in Turkish digital sports media company Mackolik Internet Hizmetleri Ticaret, 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 per cent stake in the business for cash consideration of £14.6 million 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.

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.

In addition, Perform will aquire the remaining 49 per cent 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 per cent and 75 per cent respectively, with maximum additional consideration payable in March 2016 of up to £60.4 million.

The acquisition significantly enhances Perform's presence in Turkey, the fastest growing digital market in Europe, and is in line with Perform's stated strategy for growth through acquisitions announced at the time of the IPO.

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 CEO and COO respectively and will retain the remaining 47 per cent of shares in the business, with the three private investors exiting.

Two per cent of the shares will be held by an Istanbul based financial services advisory firm Odin Financial Advisors.

Perform Joint CEO Oliver Slipper 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."

Mackolik CEO Erdem Yurdanur commented, "We are excited to be joining the Group. 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."