Cherry Completes Acquisition of ComeOnPublished December 12, 2016 by Ivan P
Cherry AB further establishes its position in the Nordic gambling market exercising its right to purchase the remaining 51% in ComeOn.
Cherry AB, one of the strongest online gaming companies in the Nordic market, has further established its position by exercising its right to purchase the remaining 51% of shares in the Malta-based company ComeOn Ltd. According to estimates, this acquisition should make Cherry Group the third largest private gaming company focused on the Nordic market.
Revenues Expected to Surge
With the acquisition of ComeOn, Cherry Group expects their overall revenues to triple in 2017. The company expects to create revenues between 2.6 and 2.7 billion SEK by the end of 2017. These expectations have solid foundations as ComeOn has a very strong presence in target markets, namely Sweden, Finland, and Norway.
With a number of well-established brands, like ComeOn, Mobilebet, and GetLucky, ComeOn has been able to create a big and loyal player-base. Although they offer a variety of casino games and even online poker, the bulk of company's profit comes from sports betting.
Cherry AB has been one of the fastest growing gaming companies in the Nordic market. With decades of experience, leading people of Cherry Group understand what is required to stay competitive in the market and act accordingly.
The move to acquire ComeOn Malta Ltd, which will be completed during the first quarter of 2017, is in line with this strategy. Cherry will pay up to a total of €280 million, deducting the €80 million it paid initially in July 2016.
Before the merger can be finalized, an extraordinary general meeting needs to take place to approve the new share issue. The meeting is scheduled for February 2017 at which point the final price for the remaining 51% will be determined. Cherry Group intends to pay the final asking price, which cannot exceed €280 million, with a combination of new shares (40%) and cash (60%). Once the price is defined, and the deal concluded, ComeOn Malta Ltd will be fully transferred to Cherry AB.