Cherry AB Acquires All Shares in Leading Affiliate Company Game Lounge Ltd

Written by:
Guest
Published on:
Dec/23/2017

Cherry AB announces its decision to exercise its option to acquire up to 100% of the shares in the leading affiliate company Game Lounge Ltd. The purchase price for an additional 44% of the shares is based on a multiple of 4.5 times the 2017 profit of the affiliate operation and six times the 2017 profit of the white-label operation. The acquisition is expected to be financed through a combination of cash and a new issue of shares in Cherry AB.

In January 2015, Cherry AB's wholly owned subsidiary, Cherry Malta Ltd, acquired 51% of the shares in Game Lounge Ltd. In the period in which it has been a member of the Cherry Group, Game Lounge has enjoyed strong and stable development, and Cherry has now resolved to acquire 44% of the shares outstanding. Following the acquisition, Cherry will hold a total of 95% of the shares in Game Lounge Ltd. The remaining shares will be held by the founders of Game Lounge, who will also stay on as the company's Head of Sales and CEO, respectively.

The purchase price for the 44% of the shares of Game Lounge will be financed in equal parts through the company's cash and a new issue of shares in Cherry AB. The purchase price is based on a multiple of 4.5 times the 2017 profit of the affiliate operation and six times the 2017 profit of the white-label operation. The cash portion is to be disbursed before 30 April 2018 and the new issue must be settled by the Cherry AB Annual General Meeting in May 2018, after which the transaction is expected to be closed.

Anders Holmgren, CEO of Cherry, said, "Game Lounge holds a strong position in a growing market. In the third quarter 2017, Game Lounge continued to grow, and revenue amounted to MSEK 45, an increase of 180% compared with the third quarter 2016. EBITDA margin amounted to 75%. Game Lounge's business model is remarkably scalable. The company has unique capabilities in search-engine optimization (SEO) and is the recognized standard in affiliation within the gaming industry, and we see great potential to expand the scope of the business to also include other segments, such as the loan affiliate website Lainat.fi, acquired by Game Lounge in November."

Gambling News

New Hampsire House Approves Sports Betting

New Hampshire moved another step closer to legalizing sports betting Tuesday with the House’s passage of a bill allowing mobile gambling and wagering at up to 10 retail locations.

National Gambling Firms 'Getting Smoked' by Regional Sportsbook Operators

National Gambling Firms 'Getting Smoked' by Regional Sportsbook Operators

Why are the national gambling companies Caesars (CZR) and Penn National (PNG) underperforming with their sportsbook operations both in Pennsylvania and New Jersey when compared to regional companies?

Where to Bet the 2019 Magic - Arena Mythic Invitational Online - Odds to Win

Where to Bet the 2019 Magic - Arena Mythic Invitational Online - Odds to Win

You can bet the 2019 Magic - Arena Mythic Invitational online.  Scroll down for all odds to win or go here now to find live odds and bet

Google Introduces New Gaming Platform Stadia

Google Introduces New Gaming Platform Stadia

Google on Tuesday unveiled a video-game streaming platform called Stadia, positioning itself to take on the traditional video-game business.

New York Sportsbooks Unlikely in 2019

New York Sportsbooks Unlikely in 2019

Gov. Andrew Cuomo sounded doubtful that sports betting would come to fruition in New York State this year, music to the ears of offshore sportsbooks with most sites accessible to New York residents. 

Syndicate