Cherry AB has continued on the acquisition trail, purchasing a significant stake in industry supplier Highlight Games.
The Swedish firm has purchased an initial 25% stake in Highlight Games at a price of £2.4m, with 20% for new issued shares and 5% acquired from an existing shareholder.
The deal includes the option for Cherry to acquire a further 26%, giving it a controlling interest, in three tranches over the coming 18 months.
Founded in 2014, Highlight Games develops sports-focused virtual games for both the online and retail markets.
Anders Holmgren, CEO of Cherry, commented: “We believe that Highlight Games has significant development and revenue generating potential, which we can help it achieve within our gaming technology business area.
“We also believe that their unique product can compete with both virtual sports games and traditional slot games. The product is applicable to a variety of markets, which will further diversify Cherry’s revenue sources.”
Tim Green, CEO of Highlight Games added: “We are delighted to welcome Cherry as a significant investor in Highlight Games.
“Cherry becomes a shareholder at an exciting phase in the company’s development and will be an important strategic partner as we continue our roll-out of Soccer Bet and our other virtual sports products into our retail, online and mobile customers.”