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Sweden – Cherry acquires NorgesSpill.com and affiliate company

By - 21 December 2015

Cherry bought Malta-based company Moorgate Media, who owns affiliate license agreements in cooperation with Web Resort.

Cherry has also acquired 100 per cent of the domain, customer database and gaming site of NorgesSpill.com.

Cherry will pay €4m for 100 per cent of the shares in Moorgate Media Ltd that operates the affiliate business. It is expected that the acquisition will have a positive effect on Cherry’s revenues with an estimated €0.4m as well as a positive impact on EBITDA with an estimated €1.2m on an annual basis. This acquisition will have an effect from the first quarter of 2016 and onwards. 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 €0.75m. The acquisition of NorgesSpill.com is expected to add another €0.3m to Cherry’s EBITDA.
The acquisition of Moorgate Media will be paid with shares in Cherry where the subscription price of the share is based on the average closing price of the Cherry shares during the period 16 – 23 of December.

The acquisition of NorgesSpill is paid in cash where €0.6 million will be paid during Q1 2016 and the remaining EUR 0.15 million will be paid once NorgesSpill.com has been migrated to Cherry’s platform.
Fredrik Burvall, CEO of Cherry, comments: “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.”

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