RhythmOne buys rewards and engagement platform for $42.5m

Digital media firm RhythmOne has bought Perk, a Canada-based mobile-first rewards and engagement platform, for $42.5m in order to strengthen its scale.

The AIM-listed company announced that it closed the deal on Thursday, after it agreed to buy Perk’s issued outstanding common and class A shares and certain employee options.

The $42.5m will be paid in RhythmOne shares at 0.381p each, on the issue of 88.2m shares, raising the total number of outstanding shares to 494m. The acquisition of Perk’s was exchanged for 4.51 RhythmOne shares at 0.381p worth about CA$2.90.

Through Perk, the company said it has gained access to a number of consumer mobile apps and web properties, adding to its supply side portfolio.

The acquisition is expected to upgrade to revenues in the 2017 financial year, and be accretive to RhythmOne in the first full year of ownership.

For the year ended December 31, 2015, Perk generated revenue of $49.3m and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of $8.4m.

Shares in RhythmOne were up 2.6% to 39.50p at 0858 GMT.