Cherry acquires majority stake in Game Lounge

Onli

cherrygamelounge
ne gaming company Cherry has announced it will exercise an option to purchase up to 100% of the shares in affiliate company Game Lounge Limited.

Under the option, the purchase price for an additional 44% 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.

The acquisition is expected to be financed through a combination of cash and a new issue of shares in Cherry AB with the cash portion required to be paid by April 2018. Cherry expects the acquisition to be settled by the Cherry AB Annual General Meeting in May 2018.

This move follows Cherry AB’s wholly-owned subsidiary, Cherry Malta Ltd, acquiring 51% of the shares in Game Lounge Ltd in January 2015.

Following the acquisition, Cherry will hold a total of 95% of the shares in Game Lounge Ltd. The remaining shares will be held by Game Lounge's founders, who will also stay on as the company’s CEO and Head of Sales respectively.

Announcing the decision to purchase, Anders Holmgren, CEO of Cherry, said: “Game Lounge holds a strong position in a growing market. In the third quarter 2017, Game Lounge continued to grow, and revenue amounted to MSEK 45, an increase of 180 percent compared with the third quarter 2016. EBITDA margin amounted to 75%.

“Game Lounge’s business model is remarkably scalable, the company has unique capabilities in search-engine optimisation (SEO) 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.”

Premium+ Connections
Premium
 
Premium
 
Premium
 
Premium
 
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium Connections
Consultancy
Executive Profiles
Chicken Ranch Casino
The Responsible Gambling Affiliate Association (RGAA)
Catena Media
Gambling Commission
Follow Us
The most prestigious Awards in the industry are heading to the Philippines! The Global Gaming Awards Asia-Pacific will recognise and reward (as the name suggests) the strongest performers from the Asia-Pacific gaming industry across the previous 12 months.
This year's winners will be announced at a luncheon ceremony on Day 2 of SiGMA Asia, 4th June, in Manila.
The eleventh annual Global Gaming Awards Americas will recognize and reward the gaming industry's strongest performers across the previous 12 months. These are the most prestigious and trusted Awards in the industry and have gained respect amongst industry heavyweights, due to the strict rules and procedures put in place.

Facing Facts: Operator Q3s from across the globe

Gambling Insider compares Q3 2023 results from major gamblin...

Taking Stock: Operators and suppliers across the world

Sticking with our theme of gambling across the globe, Gambli...

CEO Special: Jade Entertainment and Gaming CEO Joe Pisano - down to earth

Jade Entertainment and Gaming CEO Joe Pisano speaks to Gambl...

CEO Special: Betfred CEO Joanne Whittaker - saying it as it is

Betfred CEO Joanne Whittaker joins Gambling Insider Editor T...