Stockholm-listed gaming operator, Cherry, has exercised an option to acquire the remaining 51 percent stake in ComeOn Malta.
Cherry acquired a 49 percent stake in the Malta company in July this year for a total cost of €80 million and they were only scheduled to complete the acquisition in the first quarter of next year.
The remaining shares will be acquired through a combination of 60 percent cash and 40 percent in new B shares. The total purchase cost will be calculated according to a multiple of ten times ComeOn’s operating profit for the 2016 financial year, amounting to no more than €200 million.
The €80 million that was already paid by Cherry in July, will be deducted from the total purchase price, which will not be more than €280 million on a debt-free basis.
“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,” stated Fredrik Burvall, president and chief executive at Cherry.
“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.”
Cherry has announced that with this acquisition, they expect to triple their revenue, generating between SEK2.6 billion and SEK2.7 billion in the full year and they anticipate earnings before interest, tax, depreciation and amortisation to be between SEK550 million and SEK600 million. The acquisition will also see Cherry becoming the third largest private sector gaming company with a Nordics focus.