Cherry acquires major stake in gaming tech firm Highlight Games
Operator takes a 25% stake in the virtual sports supplier, with the option of increasing its shareholding to 51%
Cherry AB has acquired a 25% stake in virtual sports supplier Highlight Games for £2.4m, as the Stockholm-listed operator looks to boost its technology capabilities.
The deal will see Cherry take an initial 25% stake in Highlight Games, which was founded three years ago, with an option of acquiring an additional 26% over the next 18 months.
“We believe that Highlight Games has significant development and revenue generating potential, which we can help it achieve within our Gaming Technology business area,” Anders Holmgren, CEO of Cherry, said.
“We also believe that their unique product can compete with both virtual sports games and traditional slot games. The product is applicable to a variety of markets, which will further diversify Cherry’s revenue sources.”
Cherry AB CEO Anders Holmgren
Highlight Games develops sports-focused and IP-protected virtual games for online and retail gaming operators, while its SOCCER BET product features footage from major European football leagues.
Tim Green, CEO of Highlight Games, added: “We are delighted to welcome Cherry as a significant investor in Highlight Games.
“Cherry becomes a shareholder at an exciting phase in the company’s development and will be an important strategic partner as we continue our roll-out of SOCCER BET and our other virtual sports products into our retail, online and mobile customers.”
Cherry’s deal with Highlight Games comes just days after the operator reported a 205% year-on-year rise in Q1 revenues to SEK 541m (£47m), driven by strong growth in its five core business areas.
The operator’s share price was SEK 293 on AktieTorget at the time of writing.