Swedish gambling operator Cherry AB (plc) announced that that it had purchased a 71% stake in Malta-based online casino company Almor Holding Limited. The acquisition is effective as of July 1 and the latter company will be consolidated within Cherry’s accounts.
The 71% stake cost the Swedish company the amount of €4.6 million. In addition, Cherry would be able to buy the rest of Almor’s shares within the next 4 years and 8 months, if interested.
The Swedish group would have the right to its latest acquisition’s May and June earnings. Cherry pointed out it expects that Almor would generate positive EBITDA for the aforementioned two months and the rest of the year.
Since their launch in 2011, Almar’s main brands – Sunnyplayer, Sunmaker, and Kingplayer – have established their positions in the German-speaking markets, offering a comprehensive portfolio of a sportsbook and various online casino games. In the first five months of the year, the three brands had more than 55,000 active customers out of 355,000 registered ones.
Fredrik Burvall, who was appointed as President and Chief Executive Officer of Cherry in May, said that his company has already established its positions in Germany and is currently holding all the country’s available licenses for the provision of online casino games. With its latest purchase, Cherry is to become a major player in this market. Thus, the operator would be able to further expand and strengthen its online business. The acquisition deal also gives the Swedish company “more significant presence in continental Europe.”
Commenting on the purchase, the Director of Almor, Alexander Knopf, said that they are really delighted with the opportunity to join Cherry, as they believe this partnership would result in a remarkable growth for both entities. Mr. Knopf also pointed out that the Swedish company’s “international reach, multiple licenses, flexible technology platform, and in-house game development” would complement Almor’s knowledge of the local market as well as the operator’s brands and customer base in a perfect manner.
Following the acquisition deal, Cherry is expected to post an increase in both revenue and profit. Last year, Almor generated net gaming revenue of €11.1 million and profit of €1.2 million. Furthermore, the company posted net revenue of €5.9 million and EBITDA of €0.8 million for the first five months of this calendar year.
