Monday December 21,2015 : CHERRY GROUP ACQUIRES NORGESSPILL AND AFFILIATE
Multi-million Euro deal with Moorgate Media Ltd includes affiliate agreements.
The Cherry gambling group has signed an agreement to acquire 100 percent of the shares in the Malta-based company Moorgate Media Ltd., a company that owns affiliate license agreements in cooperation with Web Resort.
Cherry has additionally acquired 100 percent of the domain, customer database and gaming site of NorgesSpill.com, and will pay Euro 4 million for 100 percent of the shares in Moorgate Media Ltd., which operates the affiliate business.
It is expected that the acquisition will have a positive effect on Cherry’s revenues with an estimated Euro 400,000 as well as a positive impact on EBITDA with an estimated Euro 1.2 million on an annual basis.
"This acquisition will have an effect from the first quarter of 2016 and onwards," a Cherry spokesman said Monday.
"Today, the affiliate business is accounted for as a cost within Business Area Online Gaming. The acquisition will be depreciated over five years. In addition to the acquisition of Moorgate, Cherry has acquired NorgesSpill.com for Euro 750,000. The acquisition of NorgesSpill.com is expected to add another Euro 300,000 to Cherry’s EBITDA."
Cherry will pay the consideration for Moorgate with Cherry shares as valued over the period 16 – 23 December 2015. The acquisition of NorgesSpill is to be paid in cash, where Euro 600,000 will be paid during Q1 2016 and the remaining Euro 150,000 due once NorgesSpill.com has been migrated to Cherry’s platform.
Fredrik Burvall, CEO of Cherry, said Monday: "We are very pleased to add another acquisition that will further improve Cherry’s results and cash flow. NorgesSpill.com will migrate to the Cherry platform during 2016, and we are confident that we can develop the business further.”