Cherry AB has completed its acquisition of 49 percent of the shares in online casino operator ComeOn.
[dropcap]T[/dropcap]he consideration for the 49 percent has been paid with 2,901,475 B-shares and €39.7m in cash, making a total outlay of €80m. The issue of shares has been directed to the sellers of ComeOn and represents a 16.8 percent dilution in Cherry.
In the first six months of this year, ComeOn posted preliminary sales of approximately €48m and an EBIT amounting to approximately €10m – putting it in line with the group’s expected operating profit of €19-23m for the full year. This result is the basis for the final purchase price.
This is the latest in a series of strategic acquisition moves by Cherry. Late last year, the company acquired a majority stake in German-facing online casino Almor Holding, following this up with the acquisition of NorgesSpill.com, Moorgate Media and a series of affiliates in the early months of 2016.
Now we have completed the acquisition of the first 49 percent of ComeOn, we will, together with ComeOn, initiate the work of maximizing our common values and customer offerings with the goal to strengthen our common operation
ComeOn will be a complementary addition to the firm’s increasingly broad range of Scandinavian iGaming brands, which also include Mobilbet, Folkeautomaten and Casinostugan.
“Now we have completed the acquisition of the first 49 percent of ComeOn, we will, together with ComeOn, initiate the work of maximizing our common values and customer offerings with the goal to strengthen our common operation,” commented Cherry CEO Fredrik Burvall. “It is important that we and ComeOn clearly schedule the process so that when the final integration takes place it will be both swift and efficient.”
According to Cherry’s forecasts, ComeOn is expected to have an immediate positive effect on the company’s profits after accounting for cash flow and financial items.