CHERRY AQUIRE REMAINING SHARES IN COMEON (Update)
Exercises option for majority control of Nordic-focused operator.
Cherry has acquired the remaining 51 percent of the shares in ComeOn Malta Ltd, becoming the third largest private-sector gaming operator in the Nordic region.
Combined with strong organic growth, Cherry said it expects to triple its revenues as a result of the acquisition while further setting the stage for continued international expansion with strong brands.
The combined company’s pro forma revenues for the third quarter of 2016 amounts to 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.
“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,” Fredrik Burvall, president and chief executive officer for Cherry commented.
“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.”
The total purchase price is based on a multiple of ten times ComeOn’s EBIT for the full year 2016. The initial Euro 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 Euro 280 million on a debt free basis.