Cherry targets UK and sports growth

Cherry targets UK and sports growth

Tuesday, May 3, 2016 Totally Gaming
Fredrik Burvall said his company has been following ComeOn's rise for some years

Cherry Gaming chief executive Fredrik Burvall has told TotallyGaming.com that his company is targeting growth in its sportsbook offering and expansion in the UK after taking a major stake in ComeOn.

The Swedish operator spent €80m ($92.3m) on a 49 per cent share in ComeOn, with an option to buy the remaining stock by the end of the year. ComeOn, which operates sites such as ComeOn.com and Mobilbet.com, has more than 130,000 active customers and reported an operating profit of €13m in 2015. 

Burvall said the deal continued Cherry’s strategy of pursuing growth through existing operations and acquisitions and added that while synergies are unlikely to include job losses, the two companies already share similarities.

“We’ve done this deal because we believe Cherry and ComeOn will complement each other very well,” Burvall told TotallyGaming.com. “We share a similar company culture and we both have ambitious expansion plans in place for the future. From a product perspective, ComeOn will significantly boost our sportsbook offer, and it also has a strong presence in the UK which is clearly a very important market.

“Both Cherry and ComeOn are growing well ahead of the market so we do not foresee any redundancies. This deal is all about growth and we believe our combined resources and industry know-how position us extremely strongly for the future.

“Our marketing has been extremely successful and we know how to grow a brand, but sometimes circumstances dictate that the best way to make a move is through an acquisition.”

Burvall pointed to the success of Cherry’s purchase of Almor last year as an indicator of the potential upside of the deal, and added that the company has long been following the fortunes of ComeOn, which has offices in Malta, London, Gibraltar and Stockholm and is licensed in Malta, the UK and Curacao.

“We are really excited and looking forward to working alongside the ComeOn team,” Burvall said. “Since the firm was founded in 2009, we’ve been hugely impressed by its growth and the speed at which it has built a reputation as a trusted and innovative operator in a number of markets across Europe.

“As Cherry has shown in the past, we have an unparalleled track record of developing our acquisitions and we are confident this deal will benefit everyone.”

TotallyGaming.com says: “Cherry has again shown its ambition by purchasing a company which offers an established presence in potential areas of growth. It is also encouraging that Burvall specifically points out that this deal, while offering synergies, should not lead to redundancies.”

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