Coming On Strong: Cherry Acquires ComeOnPublished May 4, 2016 by Lee R
Merger strategies do not always require integration.
Cherry AB has agreed to acquire 49 percent of Come Malta Ltd shares with an option to acquire the remaining 51 percent.
With ComeOn’s sales increasing 60% to approach EUR 80 million for 2015, the company's growing reach in the desktop, tablet and mobile sector appears set to complement Cherry with recognizable brands and powerful positioning in the online casino and sports betting sectors.
A key territory where ComeOn will support Cherry is in the lucrative Scandinavian markets, which look like the ideal springboard to further Cherry's global expansion.
Cherry CEO Sweet on Deal
As Cherry CEO Fredrik Burvall explains, “This acquisition will strengthen Cherry’s position in online gaming against competitors in Scandinavia and other European markets.”
Growth Inspires Brand Investment
Burvall further pointed out the fact that the growth of both companies is already faster than the overall market median, which will facilitate brand investment to increase the visibility of the companies' existing brands and fund the creation of new strong brands. Burvall ultimately attributes this new opportunity to “the strong entrepreneurial spirit within ComeOn.”
The Multi-Branding Strategy
ComeOn's attractive positioning is the product of an effective multi-brand strategy. The provider's slate of games have been successfully marketed under several well-known provider titles. ComeOn.com, Mobilbet.com, casinostugan.com, folkeautomaten.com, Suomikasino.com, GetLucky.com and Kasyno.pl. ComeOn are among the titles which amassed 1,112,932 registered customers for ComeOn, with 109,608 of those active as of end of December 2015.
Sports Betting Support
An important sector in which the ComeOn acquisition will strengthen Cherry's customer base is workhorse sports betting, which accounted for approximately one third of ComeOn’s revenues in 2015.
ComeOn spokesperson Hans Martin Nakkim said of the deal that his company is “looking forward to joining forces with Cherry.” Nakkim reveals that ComeOn was attracted to Cherry's multi-brand strategy in kind, rendering this deal a great example of an effective merger based on similar strengths as opposed to complementary ones.