Affiliate giant Catena Media has entered into a service agreement with i15Media, the new investment company run by entrepreneurs Chris Grove and Kendall Saville.
The deal grants Catena Media the option to provide i15Media with affiliation activities in relation to either companies or assets that may be acquired by the investment company.
In addition, Catena will have a right of first refusal if i15Media decides to divest such assets or companies.
The agreement builds on an existing relationship between Catena and Grove and Kendall, whereby the affiliate giant acquired a number of US assets in New Jersey and Nevada from the two entrepreneurs.
“I’m pleased to secure the sellers valuable knowledge and network in the important US market through this extended partnership,” Catena’s chief executive Per Hellberg said. “We now enter a new phase in our journey as entrepreneurs and looking forward to do so with rapid growth and strong relationships with Catena Media.”
Catena announced details of the initial acquisition agreement in December 2016, and in October last year confirmed that it had taken over the assets.
Last month, Catena revealed that the final earn-out payment for the deal had been amended to a total of $19.4m in cash, 30% of which will be paid in April this year and 70% through a share issue.
Catena said it expects the settlement to have a positive impact on the timeline of reaching one of its financial targets, whereby it is aiming to operate within a net interest-bearing debt/adjusted EBITDA of 1.5-2.5x. With the acquisition settled, Catena hopes to achieve this in 2020.
“We are pleased with this amended agreement and happy to successfully have taken over and integrated the US assets in order to continue our fast-pace journey of growth in the US market,” Hellberg added.