Cherry has signed an agreement to acquire the remaining shares in leading igaming affiliate company Game Lounge, thus gaining 100 per cent ownership.
The purchase of the remaining consideration of five per cent consists of three parts, amounting to maximum of SEK260m (£22.12m). The first part of the purchase consideration of SEK110m is fixed, to be paid in cash when Cherry gains control of the shares, with the other two parts dependent on future EBITDA.
Cherry is entitled to pay all or part of the second and third parts of the purchase consideration in Class B shares in Cherry. The sellers are employees of Game Lounge and against this background, the acquisition constitutes a so-called related-party transaction and must therefore be approved by a general meeting in Cherry.
Cherry’s board will prepare a written account of the acquisition and obtain an independent valuation statement.
Cherry stated: “The operations in Game Lounge have developed well and Cherry’s board of directors makes the assessment that the company will continue to enjoy favourable market conditions into the future and that it is therefore desirable to increase Cherry’s holding to 100 per cent.
“The sellers will remain in their senior positions, are shareholders in Cherry and also participate in incentive program within the Cherry Group. Accordingly, the board of directors assesses that the terms of the acquisition, including the purchase consideration, are in line with the market and will therefore recommend that Cherry’s AGM approve the acquisition in accordance with the principal terms above.”
