- Catena Media buys LeapRate.com for $4m initial payment
- Depending on profitability, seller will receive additional sum
- Catena Media’s share price traded 0.4% lower after this news
Catena Media has taken another step to cement its leading position by buying forex exchange news website LeapRate.com.
The site focuses on information and news on the international forex market. It also covers news on firms offering institutional and retail FX, cryptocurrency and CFD trading, in addition to those offering services and technology to the forex market.
The company issued a statement saying that the initial purchase price involved a $4m upfront payment. $2m of this will be paid in newly issued Catena Media shares, and the balance will be paid in cash.
The stocks will be issued at the volume-weighted average market price of Catena Media stocks during the 30 days leading up to the signing. The seller could also receive an additional sum based on how the business performs over the next year.
Catena Media has the right to pay 50% of this earn-out cash in freshly issued stocks or in cash.
CEO Per Hellberg commented on the deal by saying that they were extremely pleased to welcome LeapRate.com to the Catena family, and they were looking forward to helping the site realize its true potential.
He added: “This acquisition is in line with our strategy for growth and further establishes our position as lead generator in the financial vertical.”
The deal follows several acquisitions in this market, including The Hammerstone – a premium equity service based in the US – in June.
Catena Media has nearly 300 workers worldwide, including the US, UK, Serbia, Japan, Australia, Sweden and the company’s headquarters in Malta. It is listed in the Mid Cap sector of Nasdaq Stockholm.
Its total sales for last year were €67.6m.
Catena Media’s shares were trading 0.4% lower after the news broke.