XLMedia has acquired BlueClaw for £1.8m ($2.4m) in its latest push into Europe, the company has announced in a press release.
The global publisher and affiliate has bought the Leeds-based BlueClaw with the aim of using the marketing agency as a UK hub for XLMedia’s European Sports business.
“We are delighted to announce the acquisition of BlueClaw, which will see us bring this hugely talented team into the XLM family,” said Stuart Simms, CEO of XLMedia.
While both companies have been working together since December 2020, this acquisition marks an end to the marketing agency’s independence as it will be incorporated into the broader XLMedia Group.
BlueClaw will see out 2021 as an autonomous company before becoming a shared service for the group’s owned and operated assets and agency partners.
However, XLMedia did reveal that Fergus Clawson, the owner and Founder of BlueClaw, will remain with the business going forward.
In addition, XLMedia hopes BlueClaw can help drive consistent SEO operations and digital PR best practices, to be applied across the group’s wider portfolio.
Stuart continued: “Having worked closely with them for over 12 months, we've been able to experience first-hand the quality of their work and are hugely excited at the prospect of BlueClaw’s expertise being rolled out across our broader portfolio.
“Today’s announcement further demonstrates our commitment to rebalancing the business with the correct skills, people and technologies in order to create a sustainable platform capable of delivering long-term growth.”
The acquisition will be funded through existing cash resources and is expected to be earnings accretive in the first full year of ownership.
XLMedia will pay £600k on completion and an additional £600k at the end of year one, with the remaining £600k payable as earnouts; however, the company did state that this final payout is contingent on certain performance targets being met.