The primary affiliate network of Swedish online gaming operator Cherry Gaming – Game Lounge – has consolidated its presence on the territory of Europe after it confirmed the acquisition of industry subsidiary Interclick Limited. The deal is estimated to £1.1 million.
The Chief Executive Officer of Game Lounge Jonas Cederholm commented on the company’s statement, saying that the entire team of Cherry’s affiliate was pleased with the fact that they had managed to reach an agreement with Interclick Limited. According to Mr. Cederholm, the latter had long been involved in affiliation.
The Game Lounge CEO also shared that both the UK and German gambling markets were rapidly expanding, so the acquisition deal with Interclick would further bolster Game Lounge’s strategy for expansion beyond its domestic market. All this makes the deal quite beneficial for Cherry and its subsidiary.
Over the past 14 years, Interclick has been an active affiliate of the company primarily in the gambling markets of Germany and the UK. The company also services a network of about 40 industry domains. According to a statement posted by Game Lounge, the acquisition of Interclick would provide Cherry brands with the chance to boost their presence and consolidate their positions in the UK and Germany.
According to the company’s statement, the operations of Game Lounge have been fully involved in the takeover’s financing. In addition, the acquisition is also considered to be beneficial for the company, as it is expected to help it increase its revenue by about €1.3 million. On the other hand, the earnings before interest, taxes, depreciation and amortisation (EBITDA) are also expected to rise by more than €1 million on a yearly basis thanks to the acquisition.
Return on Investment (ROI) is expected to be generated by the acquisition deal in less than year and a half. Game Lounge is planning to integrate the takeover within its already existing operations. Also, a new external affiliate-income is expected to be created to support the Cherry brands.
Commenting on the newly-announced deal, the Chief Executive Officer of Cherry Fredrik Burvall said that the takeover deal and the fact that Game Lounge was to acquire the domains, put both Game Lounge and Cherry in a stronger position in the affiliate sector, and more specifically on the UK and German markets.
Mr. Burvall also revealed that Cherry’s team was quite satisfied with its subsidiary’s performance to date. He added that the takeover deal had been “very much in line” with the expansion strategy of the Swedish company, as the affiliate market was considered an important part of the web-based gaming industry where Cherry was striving to consolidate its presence.
- Author
Olivia Cole
