Ambitious Cherry on top in Nordics with full buyout of ComeOn

Ambitious Cherry on top in Nordics with full buyout of ComeOn

Monday, December 12, 2016 Posted by Andy McCarron
Clause activated to buy outright the remaining 51% of shares of operator

The governance of Cherry Gaming AB has completed its biggest acquisition to date by confirming that it has moved to buy outright the remaining 51% of shares in European igaming operator ComeOn Malta. 

Updating investors Cherry governance detailed that it was prepared to pay a maximum consideration of €280 million for the outright purchase of ComeOn assets. Last July, Cherry had acquired 49% of the operator in a cash and new shares deal valued at €80 million. 

The proposed full ComeOn buyout, sees Cherry offer a deal combination set at 60% cash combined with a 40% new share issuance in an enlarged Cherry enterprise. Cherry governance stated that its cash commitment had been set at a maximum value of €135 million. 

Confirming the deal, Cherry governance stated that the equity buyout of ComeOn, was part of its ongoing corporate strategy to become a Nordic gaming market giant.

Issuing an initial prospectus on the impact of the deal on it enterprise, Cherry specified that its enlarged group with integrated ComeOn assets of ComeOn.com and additional Scandinavian gambling brands would become the ‘third largest Nordic focused gaming operator’ within the private sector. 

Cherry governance further declared that the enlarged company would yield potential revenues of between SEK 2600-2700 million, combined with an EBITDA range of SEK 500-600 million. 

Fredrik Burvall, president and CEO at Cherry, commented on the acquisition: “We are very pleased to be able to now conclude the acquisition of ComeOn, which means that we considerably strengthen our position in the market. Together we will create an entrepreneurial-driven gaming company where both Cherry and ComeOn have significantly stronger organic growth than the market, and the acquisition improves the Group’s results considerably.

"This deal also means that Cherry iGaming will increase its revenues from sports betting. Cherry already has a unique income stream diversification from five different business areas along the gaming value chain."

Totally Gaming says: An expected move by Cherry governance who have made little secret of increasing the firm's footprint within the lucrative Nordic online betting market. The full buyout of ComeOn will likely see Cherry adapt a multi-brand strategy to its operations as it intergrates new assets  ComeOn.com, Mobilebet.com, CasintoStugan.com, MobilAutomaten.com, folkeautomaten.com, Suomikasino.com, GetLucky.com and Kasyno.pl.

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