CentralNic buys LA-based Adrenalads for $2.35m

1st Sep 2023 10:01

(Sharecast News) - Internet specialist CentralNic announced the acquisition of Los Angeles-based Adrenalads on Friday, for cash consideration of $2.35m.

The AIM-traded company said the acquisition was aimed at bolstering its media-buying arm Zeropark, and improving its overall efficiencies and market presence, particularly in the ecommerce sector.

It said Adrenalads specialises in tier-1 search and direct navigation traffic for e-commerce platforms.

The company reported unaudited revenue of $2.7m, a gross profit of $1.1m, and adjusted EBITDA of $0.7m as at 31 December last year.

Based in Los Angeles, CentralNic said Adrenalads catered specifically to e-commerce platforms, providing them with premium source traffic to enhance user engagement and sales.

CentralNic added that the acquisition would be immediately earnings accretive, impacting its earnings per share from the get-go.

"Intensifying our engagement with consumers lies at the heart of Zeropark's Commerce Media strategy," said CentralNic chief executive officer Michael Riedl.

"With the inclusion of Adrenalads, we aim to amplify Zeropark's value to our partners - advertisers, publishers, and most importantly, to the consumers.

"The acquisition delivers on our commitment to acquiring immediately accretive quality businesses."

Riedl said CentralNic's "continued strong operating cash generation", supported by high cash reserves and committed credit facilities, continued to fund such bolt-on acquisitions, as indicated in the firm's capital allocation policy.

"The company is fully-funded to execute its strategy to simultaneously invest in the future and return cash to shareholders."

At 0942 BST, shares in CentralNic Group were up 0.65% at 121.58p.

Reporting by Josh White for Sharecast.com.