Scandinavia-based gambling group Cherry AB has completed an August 2016 acquisition that will see the company’s Game Lounge Ltd affiliate network expand into the UK and Germany. Fundamentally, the agreement entitles Game Lounge to purchase the essential assets of an affiliate marketing company called Interclick Ltd.
Profits Expected in 18 Months
To conclude the deal, Game Lounge will transfer $1.5 million in cash, with the affiliate specialist foreseeing profits inside of 18 minutes. Following the deal, Game Lounge revealed that it expects to increase its annual revenue by €1.3 million, while €1 million is the estimated earnings before, interest, taxes, depreciation, and amortisation (EBITDA).
The driving factor behind Cherry’s acquisition was the desire to expand the gambling group’s reach beyond Scandinavia and into European markets. Having worked in the UK and Germany for some 14 years, Interclick has established a network of 40 gambling domains that will immediately increase Cherry’s European portfolio.
Game Lounge Eyes Expansion
Cherry’s last major expansion into the affiliate market came in 2015, when the Scandinavian gambling group purchase a 51% stake in Game Lounge. After opening for business in 2011, Game Lounge amassed a network of affiliate sites through Finland, Sweden, and some other countries in Northern Europe.
Altogether, Game Lounge is responsible for igaming brands in 10 European jurisdictions, with company founder Jonas Cederholm still serving as CEO. In addition to the UK and Germany, Game Lounge has aspirations for the international expansion of its affiliate network. Asia, in particular, will raise new opportunities for Game Lounge.
At present, Game Lounge is heavily focused on working with Scandinavian igaming brands, including the likes of Svea Casino, Suomi Automaatti, Netti Kasino Vertailu, and Mr Bet. The same can be said for Cherry, which is responsible for overseeing the operations of Cherry Casino, Euro Slots, Euro Lotto, Nordic Slots, and Spille Automater.