Cherry seeks further acquisitions after Game Lounge deal
Cherry has said it will turn its attention to new acquisition targets after agreeing a deal to purchase the remaining 5% of shares in Game Lounge Sweden, taking full ownership of the affiliate company that has been actively pursuing M&A deals in recent months.
The agreement consists of three parts and can amount to a maximum purchase price of SEK260m (£22.1m/€23.2m/$20m). Cherry will make an initial payment of SEK100m in cash when it gains control of the shares, with further payments dependent on the division’s performance.
Cherry purchased an initial 51% holding in Game Lounge in January 2015 and in December last year opted to purchase a further 44% of shares via a combination of cash and a new issue of shares. Game Lounge founders Jonas Cederholm and Fredrik Langeland had held this remaining stake in the company.
Cherry has confirmed that Cederholm and Langeland will remain in their roles as chief executive and head of sales, respectively, after the deal goes through.
Game Lounge earlier this year acquired Slot Tracker and a majority stake in SEO specialist TodaysWeb.
A Cherry spokesperson told iGaming Business.com that the company is now seeking other acquisition targets as part of its ongoing growth strategy.
The spokesperson said: “Acquisition is a vital part of Cherry’s business strategy: to create shareholder value by owning and developing fast-growing and profitable gaming, media and entertainment companies. We are continuously reviewing acquisition targets.
“We have high expectations for Game Lounge and its highly scalable business model.”
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