Cherry becomes third largest Nordic Gaming Company with the Acquisition of remaining ComeOn Shares
Swedish gaming company Cherry AB has opted to attain the remaining 51% of the shares in ComeOn Malta Ltd. Cherry is anticipated to triple their revenue becoming the third largest Nordic-focused private sector gaming company as a result of this acquisition.
This purchase will see a strong economic growth and expected to deliver a solid background for a continued international expansion with stable brands.
The combined company’s pro forma revenues for the third quarter of 2016 amounts to SEK 475 million with an EBITDA of SEK 109 million. The Cherry Group expects that with the acquisition of ComeOn, it will generate total revenues for the full year 2017 of between SEK 2 600 and SEK 2 700 million with an EBITDA of SEK 550 to SEK 600 million.
Fredrik Burvall, President and CEO, Cherry stated: “We are very pleased to be able to now conclude the acquisition of ComeOn, which means that we considerably strengthen our position in the market. Together we will create an entrepreneurial-driven gaming company where both Cherry and ComeOn have significantly stronger organic growth than the market, and the acquisition improves the Group’s results considerably. This deal also means that Cherry iGaming will increase its revenues from sports betting. Cherry already has a unique income stream diversification from five different business areas along the gaming value chain”
ComeOn holds a strong position in the company’s main markets such as Norway, Finland and Sweden with a successful strategy based on multi-branding. Their games are marketed under many well-established brands like ComeOn.com, MobilAutomaten.com, Mobilbet.com, folkeautomaten.com, CasintoStugan.com, GetLucky.com, Suomikasino.com and Kasyno.pl. Around 25% of ComeOn revenue comes from sports betting.
The union of the two companies began earlier in July 2016 and has been progressing according to their plan. So far, the integration work carried out confirms Cherry’s view that compelling synergies exist both in short and long term.
The acquisition of the remaining 51% shares is expected to be concluded in the first quarter of 2017.
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