Swedish iGaming company Cherry Ab will exercise an option to fully acquire ComeOn Malta Ltd. and obtain a remaining 51 percent of the company’s stock. Cherry acquired 49 percent of ComeOn for 80 million euros in July.
The company expects the acquisition will triple its revenues and make it the third largest operator in the Nordic market. The company also hopes the acquisition will give it a strong base for further international expansion, it said in announcing the deal.
The company had pro forma revenues for the third quarter of 2016 of SEK 475 million with an EBITDA of SEK 109 million. The Cherry Group expects that with the acquisition of ComeOn, it will generate total revenues for the full year 2017 of between SEK 2 600 and SEK 2 700 million with an EBITDA of SEK 550 to SEK 600 million, the release said.
“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,” said says Fredrik Burvall, president and CEO of Cherry. “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.”
ComeOn has performed well in Norway, Sweden and Finland and markets games under several successful brands including ComeOn.com, Mobilebet.com, CasintoStugan.com, MobilAutomaten.com, folkeautomaten.com, Suomikasino.com, GetLucky.com and Kasyno.pl. The company derives about 25 percent its revenue from sports betting.
Cherry said the acquisition will be concluded in the first quarter of 2017. The integration of both companies, which began in July 2016, is progressing according to plan, the release said.
The total purchase price is based on a multiple of ten times ComeOn’s operating profit (EBIT) for the full year 2016. The initial €80 million portion of the purchase price, which was paid in July 2016, will be deducted from the final purchase price which can be up to a maximum of €280 million on a debt free basis, the release said.
