One of the Nordic online gambling giants, Cherry, are planning the total acquisition of the remaining 51% shares of the Maltese gambling company operator ComeOn.
Earlier during this year, Cherry AB has bought and acquired 49% of the total shares from ComeOn Malta Ltd. who provides casino and sports betting services to its players. Further to this deal, the Swedish online operator also agreed and where entitled to acquire the remaining 51% of the company shares further into the last quarter of the year. The acquisition total cost for the 49% of the company's shares amounts to €80 million which where paid partially in cash and b-shares.
This new acquisition helped Cherry to instantly strengthen its Scandinavian market operations and triple up its revenues during the year. ComeOn Malta had made some impressive sales for the first 6 months of the year, with numbers going up to more then €40 million (preliminary sales amount) until June 2016. This was the basis on which the share price was negotiated.
The remaining 51% are now scheduled to be acquired in the first quarter of 2017 where Cherry are expected to pay around €280 million after deducting the initial €80 which where paid at the start of this year.
Fredrik Burvall, President and CEO of Cherry said that with this acquisition, they are boasting a considerable increase in strength and position on the market with a significant increase in organic growth.
After the acquisition, Cherry is expected to increase its revenue between 2.6 to 2.7 Billion SEK in year 2017, totalling its income before TAX , interest and amortisation to a whopping SEK 600 million.
The deal should be concluded next February 2017 after ComeOn's results are finalised.