Interactive
Sweden – Cherry completes acquisition of 49 per cent of shares in ComeOn
By Phil - 21 July 2016
Cherry has completed the acquisition of the first 49 per cent of shares in ComeOn Malta Ltd.
Cherry’s acquisition means that the company’s market position will be considerably strengthened in Scandinavia with strong brands including ComeOn, Mobilbet, Folkeautomaten and Casinostugan. The transaction also brings fantastic opportunities for continued international expansion.
The consideration for the 49 per cent has been paid with 2,901,475 B-shares and €39.7m in cash – a total of €80m. The issue of shares has been directed to the sellers of ComeOn and represents a 16.8 per cent dilution in Cherry.
ComeOn is expected to have an immediate positive effect on Cherry’s profit after financial items and cash flow.
ComeOn reported preliminary sales of approximately €48m and an EBIT for the period January 1, 2016 to June 30, 2016 amounting to approximately €10m. The figures are adjusted for certain items and have been provided by the sellers and has not been subject for audit or review by Cherry. This shows that ComeOn’s financial performance is in line with the group’s expected operating profit for 2016 of €19-23m. This result is the basis for the final purchase price.
Fredrik Burvall, CEO of Cherry, said:“Now we have completed the acquisition of the first 49 per cent of ComeOn, we will, together with ComeOn, initiate the work of maximizing our common values and customer offerings with the goal to strengthen our common operation. It is important that we and ComeOn clearly schedule the process so that when the final integration takes place it will be both swift and efficient.”
