Major Swedish gambling operator Cherry AB announced another important acquisition after its Game Lounge affiliate network had purchased leading affiliate company Interclick Limited for the amount of $1.5 million, thus expanding into Germany and the UK. The gambling group today revealed that it would buy operator of restaurant casino services Betman AB for a purchase price of SEK3.9 million.
Under the acquisition deal, Cherry would acquire all related casino agreements, equipment, and staff currently managed by Betman as of October 1, 2016. At present, the latter company provides restaurant casino options in 15 venues in Stockholm, Visby, and Sälen.
As mentioned above, Cherry will pay a total of SEK3.9 million for its latest acquisition. The amount of SEK2.3 million will be paid in cash upon the deal’s closure. The remaining SEK1.6 million is due to be paid in the third quarter of 2017.
The major gambling operator said that as a result from the transaction, the amount of SEK11 million in revenue and positive EBITDA of SEK2 million is expected to be contributed to the overall full-year figures generated by the group. Cherry also pointed out that return of investment is projected to be generated within less than two calendar years.
Following the acquisition, the gambling operator will own 68% of all venues to be providing restaurant casino options across Sweden.
Commenting on the deal, Cherry CEO Fredrik Burvall said that the Betman acquisition will further establish his company as a leader in the Swedish restaurant casino market and its presence in Stockholm, Visby, and Sälen, and will add qualified personnel while Cherry is using its scale advantage to improve the venues’ performance.
Earlier this year, the Swedish gambling operator completed yet another important transaction that secured it with increased presence in the Nordics. Cherry purchased a 49% stake in gambling operator ComeOn Malta Ltd. for the total consideration of €80 million. ComeOn Malta manages the Casinostugan, ComeOn, Folkeautomaten, and Mobilbet brands, with all of them being well-established across the Nordic countries. Cherry will be able to acquire the remaining interest in the gambling company for the total amount of €280 million. The operator revealed that it might exercise the option sometime in the fourth quarter of the year.
