Swedish Casino group Cherry AB will purchase Maltese-based owners of ComeOn, in a major gambling deal.
Cherry AB, seeking to strengthen in Scandinavia, has agreed to purchase 49% of ComeOn, with a further deal in place for the other 51%. This major gambling deal will provide Cherry AB with increased market strength in the key areas of online casino and online sportsbook. They had ceased trading on the AktieTorget Exchange in Stockholm last week, as their value had risen by a quarter within a fortnight.
ComeOn operate in a variety of guises, including ComeOn! Casino, mobilbet.com, folkeautomaten.com, suomikasino.com, and kasyno.pl. They have been growing fast in recent years, with over 130k total active customers at the beginning of this year, and 2015’s operating from of €13m was 70% higher than 2014.
Major gambling deal will be completed in two parts
Cherry negotiated a maximum free of €280m, predicated upon ComeOn’s most recent figures regarding operating profit being roughly a tenth of that figure. Cherry will first make a payment of €80m, consisting partly of cash and partly new shares, in exchange for 49% of ComeOn.
The remaining 51% must be purchased by the final day of 2016: otherwise ComeOn has the right the buyback the shares for only €40m. The acquisition is dependent on approval by shareholders of Cherry, which will come at an EGM within a month.
Cherry hopes that joining with ComeOn will allow for useful synergies in marketing and the general running of the business. There are no planned redundancies as both companies are “growing faster than the market,”according Fredrik Burvall, Cherry’s CEO.