iGaming operator Cherry is to acquire the majority of Game Lounge shares, financing the acquisition through a combination of cash and a new issue of shares.
Cherry said Game Lounge had performed well since it bought a 51 per cent share in the company, through its subsidiary Cherry Malta, in 2015, and that it was now exercising its right to acquire further shares.
Following the acquisition, Cherry will hold a total of 95 per cent of the shares in Game Lounge. The founders of Game Lounge, who will stay on as the company’s head of sales and CEO, will hold the remaining shares.
Nasdaq Stockholm-listed Cherry revealed the purchase price for the additional 44 per cent 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.
Anders Holmgren, CEO of Cherry, said Game Lounge held a strong position within the market with revenue for the third quarter of 2017 up 180 per cent on the same period the previous year.
“Game Lounge’s business model is remarkably scalable, the company has unique capabilities in search-engine optimisation and is the recognised 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,” he said.
