Cherry acquires remaining shares in ComeOn

Cherry has exercised an option to acquire the remaining 51% of shares in ComeOn Malta.

Scheduled for completion in the first quarter of next year, the acquisition comes after Cherry in July took a 49% stake in ComeOn, for a total cost of €80 million ($84.7 million).

Cherry will secure the remaining shares through a combination of 40% in new B-shares and 60% cash, with the total purchase price based on a multiple of 10 times ComeOn’s operating profit for the full year 2016.

The initial €80 million of the purchase price, paid in July, will be deducted from the final purchase price, which can be up to a maximum of €280 million on a debt-free basis.

In a statement confirming the move, Cherry said that it now expects to triple its revenue and become the third largest Nordics-focused private sector gaming company.

Cherry added that with the acquisition, it will now generate revenue of between SEK2.6 billion and SEK2.7 billion in the full year, with earnings before interest, tax, depreciation and amortisation to be worth between SEK550 million and SEK600 million.

Fredrik Burvall, president and chief executive of Cherry, said: “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.

“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.”

Related article: Cherry takes 49% stake in ComeOn