Swedish gaming company Cherry AB announced that it has penned an agreement for the purchase of a 49% stake in ComeOn Malta Ltd. Under the terms of the deal, Cherry would be able to acquire the remaining 51% in the entity at a later stage.
Generally speaking, ComeOn is a rapidly expanding online gambling company, which provides customers with numerous gaming solutions available across desktop, tablet, and mobile. It is believed that the business would further strengthen its positions with Cherry’s offering, particularly in the online casino and sports betting segments.
The company operates under licenses from the Malta, UK, and Curacao gambling authorities. It has offices in Malta, London, Stockholm, and Gibraltar. Cherry explained that it aims at expanding and strengthening its positions in the Scandinavian gambling markets through this latest acquisition.
ComeOn reported sales of a little less than €80 million in 2015, up 60% from the results posted for the previous year. Operating profit increased 70% to €13 million. The company has previously said that it expects sales of up to €120 million and operating profit of up to €23 million in 2016.
As of December 31, 2015, ComeOn had a total of 1,112,932 registered customers, of which 133,324 active ones. Through the acquisition of the 49% stake in the online gaming business, Cherry will be able to strengthen its positions in the sports betting market. One-third of the revenue ComeOn generated in 2015 was namely from sports betting customers.
Commenting on the latest announcement, Cherry CEO Fredrik Burvall said that the acquisition would strengthen Cherry’s positions in the Scandinavian and other European markets. Mr. Burvall added that both his company and ComeOn are growing much faster than the online gambling market as a whole, which makes it easier for them to invest in existing brands and to expand in other markets.
The executive further noted that they are happy to add a number of strong brands to their current offering and to benefit from ComeOn’s “strong entrepreneurial spirit.”
Hans Martin Nakkim, a spokesman for ComeOn, said that they are looking forward to joining forces with such a rapidly growing company as Cherry. Mr. Nakkim also commented that they all see a lot of potential for synergies between the two businesses, especially given Cherry’s multi-brand strategy.
