The gaming operator Cherry AB officially revealed it has acquired the remaining 51% stake in the sports, casino and poker provider ComeOn. The latest takeover deal and the recent strong organic growth of the Swedish company are expected to result in a massive revenues increase which will lead to the company becoming the third largest private sector gaming company in the Nordic region.
As revealed by Cherry, the acquisition of the remaining 51% stake in ComeOn is expected to be finalised in the first three months of 2017. The company revealed that the integration of the companies’ operations is currently being carried out according to plan.
The acquisition of the remaining stake in the Malta-based company is also expected to end up in providing Cherry with solid ground for further expansion in international regulated markets through various brands.
Currently, ComeOn is known for its strong positions in Cherry’s main markets of interest, including Sweden, Norway and Finland. The company, which was officially established in 2009, is also known for its multi-brand strategy in the region, including some of the most profitable brands in the Nordics, including ComeOn.com, GetLucky.com, CasintoStugan.com, Mobilebet.com, folkeautomated.com, Kasyno.pl, MobilAutomaten.com.
The Chief Executive Officer of Cherry Fredrik Burvall, who is also President of the company, revealed that the entire team of the Swedish gaming company was focused on bolstering its presence in the market. He shared that the two companies were expected to generate significantly stronger organic growth, which would also boost the overall results of the Group. According to Mr. Burvall the sports betting revenues of the company’s division would be improved thanks to the acquisition, too.
The pro forma revenues of the combined company is estimated to SEK475 million for the third quarter of current fiscal year. The Group’s earnings before interest, taxes, depreciation and amortisation (EBITDA) over the period amounts to SEK109 million. Thanks to the acquisition of Malta-based ComeOn, the total revenues that are to be generated by Cherry for the full year 2017 are expected to be in the range from SEK2,600 and SEK 2,700 million. The company’s outlook for the EBITDA over the same period is between SEK550 and SEK600 million.
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Olivia Cole
