Catena Media : agrees on amended and final terms for US assets acquired in December 2016

Catena Media plc (Nasdaq Stockholm: CTM). Catena Media has agreed with the sellers of U.S. assets acquired in December 2016 to amend the final earn-out terms. The final earn-out payment corresponds to a total of USD 19,386,876, 30% of which will be paid in cash in April 2020, and 70% of which will be paid through a share issue, to be made to the sellers as soon as possible in 2020.

In December 2016, Catena Media acquired assets in the regulated online casino and poker markets in the U.S. states New Jersey and Nevada. In October 2018, Catena Media agreed with the sellers on the structure of the third earn-out, contemplating a prepayment and a final payment. It was then determined that up to 70% of the third earn-out could be made in Catena Media shares and 30% in cash. 

In July 2019 the prepayment was determined. Now the terms for the final earn-out payment has also been agreed. The final and total earn-out payment corresponds to USD 19,386,876. In particular, 30% of this final amount will be paid in cash in April 2020. It has now also been determined that 70% of the final earn-out payment will be made in shares, where the price per share shall be SEK 44.5433, and that the share issue shall be made to the sellers as soon as possible in 2020. The sellers have also agreed on a lock-up period in various tranches, last of which expiring on 1 October 2020. 

Catena Media obtained full control of the U.S. assets by 1 November 2019.

The settlement is expected to have a positive impact on the timeline of reaching one of Catena Media's financial targets where the goal is to operate within a net interest-bearing debt/adjusted EBITDA of 1.5-2.5x. With the acquisition settled, the aim is to operate within the range in 2020. 

"We are pleased with this amended agreement and happy to successfully have taken over and integrated the U.S assets in order to continue our fast-pace journey of growth in the U.S. market".

Per Hellberg, CEO
 

For further information, please contact:  

Per Hellberg, CEO, Catena Media plc
Phone: [phone], E-mail: [e-mail]
Åsa Hillsten, Head of IR & Communications, Catena Media plc
Phone: [phone], E-mail: [e-mail]

The information was submitted for publication, through the agency of the contact persons set out above, on 23 December 2019 at 08.00 CET.

About Catena Media
Catena Media provides companies with high-quality online lead generation. Through strong organic growth and strategic acquisitions, Catena Media has since 2012 established a leadingmarket position with approximately 390 employees in the US, Australia, Japan, Serbia, UK, Sweden, Italy and Malta (HQ). Total sales in 2018 reached EUR 105.0m. The company is listed on Nasdaq Stockholm Mid Cap. Further information is available at www.catenamedia.com.

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