Cherry acquires majority stake in Almor Holding
Cherry has acquired a 71% stake in Almor Holding, a Malta-based online casino business that specialises in German-speaking markets.
Under the agreement, online gaming operator Cherry will pay €4.6 million ($5.1 million) for the majority stake in Almor, with the option to buy the remaining stake within the next four years and eight months.
Payment of the initial purchase price will be split 50-50 between cash and shares in Cherry.
As of July 1, Cherry will consolidate Almor within its group accounts, but will have the right to the earnings from May and June in the acquired balances.
Almor, which launched in 2011, counts Sunmaker, Sunnyplayer and Kingplayer as its principal brands.
The online casino business posted net revenue of €11.1 million in 2014 with a profit of €1.2 million.
During the first five months of this year, net gaming revenue amounted to €5.9 million while earnings before interest, tax, depreciation and amortisation came in at €800,000.
“Cherry has developed a strategic position in Germany, where we already hold all currently available online casino licenses, including in Schleswig Holstein,” Cherry president and chief executive officer Fredrik Burvall said.
“With this acquisition, Cherry immediately becomes a major online casino player in this major European market.
“In the short-term this enables Cherry to grow significantly and to strengthen the online gaming business division.
“The deal gives Cherry a larger and more significant presence in continental Europe, contributing positively to both our margins and our growth prospects.”
Alexander Knopf, director of Almor, added: “Cherry’s international reach, multiple licenses, flexible technology platform and in-house game development will be highly complementary to our local market knowledge, established brands and customer base.”
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