Perform Group PLC has acquired a majority stake in Mackolik, a leading Turkish digital sports media company, to enhance its market position in Turkey's rapidly growing digital sector.

Information on the Target

Perform Group PLC has successfully acquired a majority stake in Mackolik Internet Hizmetleri Ticaret A.S. ("Mackolik"), a prominent Turkish digital sports media company. Mackolik operates several leading independent sports websites, including mackolik.com and sahadan.com, which are crucial players in the Turkish digital sports landscape. The acquisition includes an initial 51% stake, with an initial cash consideration of 40.8 million Turkish Lira (TRY), equivalent to approximately £14.6 million. This valuation is based on a ten times multiple of the business's audited EBITDA for the year ending December 31, 2012. Following adjustments for the actual reported EBITDA, Perform plans to acquire the remaining 49% in 2016 based on projected EBITDA results.

Industry Overview in Turkey

Turkey is the sixth-largest economy in Europe and boasts a young and growing population, making it an attractive market for digital media companies like Perform. The country has around 30 million active internet users, and the mobile internet sector is rapidly expanding, with 21 million 3G mobile subscribers. Online advertising expenditures are forecasted to grow by an impressive 27% CAGR from 2011 to 2016, reflecting both the economic potential and the appetite for digital content. This burgeoning digital environment presents both opportunities and challenges for stakeholders in the media and advertising sectors.

The digital sports media sector in Turkey is particularly promising, driven by increasing internet penetration and the rising popularity of sports among the youth. Mackolik has positioned itself as the market leader, with a significant share of the audi