Swedish gambling operator Cherry AB announced that it has completed the acquisition of a 49% stake in ComeOn Malta Ltd. Cherry paid a total consideration of €80 million for its fellow gaming company. The said consideration was paid both in B-shares and cash.
Cherry pointed out that the latest acquisition would strengthen its market position in the growing Scandinavian gambling market with the addition of already established brands like ComeOn itself, Folkeautomaten, Mobilbet, and Casinostugan. The Swedish gambling operator also said that the transaction will have an immediate positive effect on its earnings per share.
Under the terms of the acquisition deal, Cherry will be able to purchase the remaining 51% interest in its fellow gambling company. The operator has revealed that the option may be exercised between October 1, 2016 and December 31, 2016. The overall consideration is expected to amount to a maximum of €280 million.
Commenting on the latest announcement, Cherry CEO Fredrik Burvall said that now as the transaction has been completed, the two companies will combine efforts to maximize “common values and customer offerings” with the aim of bolstering their common operation. The official emphasized on the necessity for the two businesses to schedule the process so as to make sure that the final integration will go swiftly and efficiently when the time for it comes.
ComeOn is a rapidly growing online gambling business that provides its products across multiple channels. It holds licenses from the UK, Curaçao, and Malta gambling regulators and has offices in London, Stockholm, Gibraltar, and Malta. The company has a particularly strong presence in the Scandinavian region.
ComeOn posted preliminary sales of around €48 million for the six months ended June 30, 2016. EBIT for the period totaled €10 million. The results posted have become the basis for the eventual purchase prize, Cherry noted in a statement on the matter, and are in line with ComeOn’s expectations for full-year operating profit of between €19 million and €23 million.
Founded in 1963, Cherry is the market leader in the provision of land-based gambling options across Sweden. In addition, the company has also been providing online casino and lottery products for some time now. It has recently bought gaming developer Yggdrasil Gaming, thus securing itself with presence in the gaming software development sector as well.
