Cherry has signed a deal to acquire 25% of gaming technology company Highlight Games Limited, with the option to later acquire a further 26%.
The 25% stake is worth £2.4m (€2.83m/$3.1m) and is made up of 20% of newly issued shares in Highlight Games and 5% purchased from an existing shareholder.
The deal will also allow Cherry to purchase a further 26% of Highlight Games in three further transactions over the next 18 months.
Anders Holmgren, chief executive of Cherry, said: “We believe that Highlight Games has significant development and revenue generating potential, which we can help it achieve within our Gaming Technology business area.
“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.”
Tim Green, chief executive 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.”
In April Cherry acquired an additional 7.5% stake in online casino and sportsbook company Almor Holding, following its acquisition of a 71% majority stake in the company in 2015.