The private gaming company Cherry has acquired the remaining shares in ComeOn Malta Ltd to become the third largest player in the Nordics.
[dropcap]C[/dropcap]herry, the Swedish online gaming operator, has confirmed it has completed an acquisition of the final 51 per cent of shares for ComeOn Malta Ltd.
The company claims it exercised its option to obtain the remaining shares in the Malta-based gaming website, making Cherry the third largest Nordics-focused private sector gaming company.
Cherry’s combined pro forma revenues for Q3 2016 totalled SEK 475 million with an EBITDA of SEK 109 million and the company claims its acquisition of ComeOn Malta Ltd. is expected to deliver a sound basis for continued international expansion with strong brands.
Commenting on Cherry’s latest acquisition, Fredrik Burvall, President and CEO, Cherry, said: “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.”
The Cherry Group claims that following the acquisition of ComeOn, it could 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.
Burvall added: “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 is well established in Norway, Sweden and Finland and derives roughly 25 per cent of its revenue from sports betting.
Cherry expects that the acquisition of the remaining 51 per cent of the shares in ComeOn Malta Ltd will be concluded in the first quarter of 2017. The total purchase price is based on a multiple of ten times ComeOn’s operating profit (EBIT) for the full year 2016.