Cherry acquires remaining shares of ComeOn
Operator expects full-year 2017 group revenues to triple as it strengthens its position in the Nordics
Cherry AB has agreed to buy the remaining 51% shares of its recently-acquired ComeOn business, a move the operator expects will triple group revenues next year.
The group, which acquired 49% of ComeOn back in May, will buy the remaining shares of the operator for a total purchase price based on a multiple of 10 times ComeOn’s operating profit for the full-year 2016.
The initial €80m (£67.4m) Cherry paid for the shares back in July will be deducted from the final purchase price, which can be up to a maximum of €280m (£235.8m) on a debt-free basis.
Cherry expects it will generate total revenues of between SEK2.6bn (£225m) and SEK2.7bn (£230m), and EBITDA of between SEK550m (£47.6m) to SEK600m (£52m) in 2017 as a result of the full takeover.
Cherry president and CEO Fredrik Burvall, who previously told EGR Intel the operator would “most likely” purchase the remaining shares, said the deal would see it become the third largest private sector gaming company in the Nordics.
“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,” said Burvall
“This deal also means that Cherry iGaming will increase its revenues from sports betting,” he added.
The acquisition of the remaining shares is expected to conclude in Q1 2017, and Cherry added the integration of both companies was progressing according to plan.