Major affiliate network Game Lounge Ltd. today announced that it has penned an agreement to buy the essential assets of affiliate company Interclick Ltd. Thus, the Malta-based provider of affiliate marketing services for the Scandinavian online gaming markets will expand its presence into the rapidly growing UK and German markets.
Game Lounge will pay the amount of $1.5 million for its latest acquisition. The company will finance the transaction through cash. Interclick is expected to increase Game Lounge’s annual revenue by €1.3 million and its EBITDA by an approximate of €1 million. The affiliate marketing provider said that it expects return on its investments within less than eighteen months.
Interclick has been servicing the UK and German markets for 14 years. By acquiring the company, Game Lounge will integrate more than 40 domains and a wide number of affiliate accounts into its own operations.
Commenting on the deal, Game Lounge CEO and founder Jonas Cederholm said that it will accelerate his company’s strategy to expand outside the Nordic markets and that they expect to reap the benefits from their latest acquisition from day one.
Victor Lerenius, Chief Technology Office of Game Lounge, pointed out that the transaction is an important step towards their expansion into core European markets. The official further noted that the domains acquired are strong enough to complement their Nordic brands in an excellent manner. Concluding his comment, Mr. Lerenius said that they expect faster overall growth in the short and long term.
Game Lounge was founded in 2011 by Mr. Cederholm and Fredrik Langeland. The company aimed at changing the Nordic affiliate marketing landscape and quickly established itself as one of the leaders in the field. Its portfolio includes Finnish and Swedish affiliate websites as well as ones from other Northern European countries.
Last year, major Swedish gambling operator Cherry AB announced that it would buy a 51% stake in the affiliate network. The transaction resulted in Game Lounge launching two white-label online casinos. The company services ten European jurisdictions, including Germany and the UK, and is eyeing expansion into emerging Asian markets, with Japan being one of these.
Of Game Lounge acquiring Interclick, Cherry CEO Fredrik Burvall said that this would put the affiliate network and the Cherry gambling group as a whole in a stronger position within the affiliate marketing sector, particularly in the German and UK markets. The executive further noted that the acquisition is completely in line with his company’s expansion strategy and that, among other benefits, it would also strengthen Cherry’s online business.
