Swedish gaming giant Cherry confirms acquisition of restaurant casino brand Betman
[dropcap]C[/dropcap]herry has agreed to acquire the casino agreements, casino staff and equipment from Betman AB as of 1 October 2016. Betman operates restaurant casino in 15 venues with 27 gaming tables in Stockholm, Sälen and Visby.
Fredrik Burvall, CEO Cherry AB, commented: “The acquisition of Betman means that we further solidify our leadership position in the restaurant casino market. It further strengthens our position in Stockholm, Sälen and Visby and adds qualified personnel, while we can use our scale advantage to help the venues perform even better.”
The acquisition is expected to contribute MSEK 11.0 in revenue and a positive EBITDA of MSEK 2.0. The purchase price, which includes the maximum additional purchase price, amounts to MSEK 3.9. The deal is expected to generate ROI in less than two years. MSEK 2.3 is paid in cash on acquisition and the additional purchase price will be paid during quarter 3 2017.
Cherry’s market share of restaurant casino after the acquisition will be approximately 68 percent of the active gaming venues, according to the 2016 September statistics from the Swedish Lotteries and Gaming Authority.
Fredrik Elmqvist CEO of Yggdrasil gaming, Cherry’s largest and most profitable subsidiary, commented on its performance in the first half of the year:
“The entire team can be very proud with how things have progressed in the first half of 2016 for Yggdrasil. Our strategy is firmly on track and we are consistently smashing our target numbers out of the park. Being awarded Slot Provider of the Year at the 2016 EGR B2B Awards was a huge moment for the company and proved that we are now a tier one supplier. This is all thanks to a rapid moving and growing team.
“The growth we have achieved has been excellent, but we are still in a volatile phase of expansion so we need to view the current results in a more long-term perspective. We have focused predominantly on organic growth from existing customers over the past nine-twelve months, delivering a range of market-leading promotional tools that have proven very popular with our customers and their players.
“Our attention now turns to new business as we are ready to take on a lot more after investing significantly in infrastructure and focusing on optimisation during H1. The fact we have signed massive names like bet365 and bwin.party shows how well our products and promotions are being received by the very best in the business