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CHerryAB will take over Betman AB
CHERRY ADDS TO RESTAURANT CASINO ASSETS
Gambling group will take over Betman AB next month.
Online and land gambling group Cherry AB has announced the addition to its restaurant casino assets of Betway AB with effect from October 1 2016.
The agreement encompasses the acquisition of Betways casino agreements, casino staff and equipment and involved Betways 15 Swedish venues in Stockholm, Sälen and Visby.
The acquisition is expected to contribute SEK 11 million in revenue and a positive EBITDA of SEK 2 million. The purchase price, which includes the maximum additional purchase price, amounts to SEK 3.9 million, and the deal is expected to generate ROI in less than two years.
The consideration is to be paid as SEK 2.3 million in cash on acquisition and the additional purchase price during Q3-2017.
Cherry’s market share of restaurant casino after the acquisition will be approximately 68 percent of the active gaming venues, according to 2016 September statistics from the Swedish Lotteries and Gaming Authority.
Fredrik Burvall, CEO Cherry AB said in a statement announcing the deal Monday:
“The acquisition of Betman means that we further solidify our leadership position in the restaurant casino market. It further strengthens our position in Stockholm, Sälen and Visby and adds qualified personnel, while we can use our scale advantage to help the venues perform even better.”
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